Iran has developed IPC contract model in a bid to sweeten oil contracts for foreign firms who can help Iran enhance recovery from it oilfields.
Iran has more than 50 oil and gas projects which need at least 185 billion dollars in investment for completion, Iranian energy officials have said.
“New contracts with foreign companies will be signed in the IPC (Iran Petroleum Contract) framework which I think will be more attractive,” Zangeneh said.
Zangeneh said beside the new contract model, Iran will introduce its upstream oil projects at the conference.
Under the IPC framework, Iran will cede exploration, development and production operations on an oilfield exclusively to a foreign contractor. Foreign companies will be required to commit to optimal and sustainable production from the field and transfer of technology.
IPC is replacing buyback deals which required the host government to pay the contractor an agreed price for all volumes of hydrocarbons it produced.
Under the IPC, the National Iranian Oil Company (NIOC) will set up joint ventures for crude oil and gas production with international companies which will be paid with a share of the output.
Oil majors including Royal Dutch Shell, France’s Total, BP and Italy’s Eni have indicated interest in Iran’s new projects.
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