Mohammadi, CEO of Oil Industries Engineering and Construction (OIEC), Navid
Rahbar, Managing Director of APP Dentons law firm, Jaap Kalkman, head of the
Energy & Utilities Global Practice at Arthur D. Little, Vasiliy A.
Mozgovoy, Assistant to General Director of PJSC TATNEFT, and Azamat F.
Ismagilov, Deputy General Director for Business Development and Member of
Management Board at JSC Zarubezhneft.
panelists examined Iran's investment risk and noted that Iran, relying on its
potential in the petroleum industry, can benefit from the new model of oil
contracts to develop good cooperation at the international level.
said some countries had changed their approach in a bid to be able to attract
investment in their petroleum sector.
to Iran's new model of oil contracts, known as the Iran Petroleum Contract
(IPC), he said: "By benefiting from this new model of contract, Iran will
be able to develop good cooperation in the world for developing its petroleum
noted that reconsideration of approaches to petroleum industry may face
resistance in certain cases, citing Indonesia and Mexico.
changes have been superficial and unsuccessful in Indonesia due to pressure by
political groups. They failed to cause transparency and improve procedures;
therefore, they resulted in the failure of petroleum industry
development," Kalkman said.
for Mexico, he said: "Like Iran, this country enjoys oil potential and the
Mexican government was suffering from bureaucracy challenges in awarding
contracts to foreign companies, but it undertook efforts to cause fundamental
changes in different sectors in order to facilitate conditions for the
operation of foreign companies and attraction of investment."
said Mexico recorded success immediately after introducing changes, adding that
signs of success emerged gradually as changes took effect.
who heads OIEC, said the IPC contracts would eliminate restrictions
incorporated into buyback contracts.
buyback deals, we were faced with such restrictions as lack of flexibility in
the master development plan and the impossibility of revision, short-term
duration of contract and the impossibility of implementing enhanced recovery
projects, and fixed CAPEX among others. Most of these restrictions have been
removed in the new oil contracts," he said.
far, 17 Iranian companies have been identified as companies qualified to work
in E&P projects. Four of them have already been involved in buyback
projects," he added.
Mohammadi called for
paying more attention to technical capabilities of Iranian companies, saying:
"Iranian E&P companies are on the path towards favorable growth and it
is necessary for these companies to step onto this path as soon as
Courtesy of Iran Petroleum