TEHRAN – Petroleum Engineering and Development Company has been assigned the task of negotiating the development of oil fields in the country. This company faces a heavier task with the oil industry getting oriented towards changing the conditions of contracts. The most important part of these contracts involves legal aspects and their management. International law expert Nasrollah Ebrahimi tells the Petroenergy Information Network about the latest oil field development contracts and relevant negotiations.

Q: Lets begin our interview with tumors of proposed amendments into buy-back deals. Have you discussed possible changes in the nature of these contracts in the talks about developing oil fields? A: Changes into buy-back deals for oil projects is nothing new and we begun long time ago to reform these deals to serve our national interests in a better way. Scientific assessment can take us to identifying bottlenecks and restrictions before seeking solutions. Q: What aspects of these deals will be discussed? A: Every change needs the approval of decision-making bodies. This procedure begins from the Ministry of Petroleum, but we have yet to receive an official instruction for reforming international deals. I have to note here that when we talk about changes we do not intend to question buy-back deals. Q: Are those involved in surveying these deals arriving at any conclusion? A: As far as I know, all negotiations have been held at the level of experts at the Ministry of Petroleum. Before we receive an official order for changes into the nature of buy-back contracts, we will go ahead with the current status. Q: Will you take advantage of the companies you are negotiating with in finding better solutions? A: Yes, definitely. The success of any contract depends on the satisfaction of both sides. We will face challenges if we fail to satisfy our international partners. Q: Thanks to its interactions with foreign companies, PEDEC enjoys a good opportunity to examine conditions for oil contracts. What do you think? A: Yes, PEDEC has been interacting with foreign companies before striking deals. We can hear the views of our foreign partners for better work. Q: Can you tell us what fields is PEDEC negotiating now? A: We are negotiating the development of Yadavaran Oil Field. A Chinese delegation is here to that effect. The Chinese have offered a proposal to Iran for developing the oil field, but their demands do not meet buy-back standards. We told them to reconsider their proposal and they sent us a new version. Q: Iran and China have already agreed to discuss changes into buy-back deals before developing Yadavaran Oil Field. Will you follow up on that agreement? A: PEDEC is only involved in the structure of the deal and such agreements that you mention are upon the international affairs department of the Petroleum Ministry. Q: Can you explain about your discrepancies with the Chinese about Yadavaran field? A: We are to debate a ceiling for investments, rate of return, acceleration of the project and punishment in case of failure. The two sides should also discuss cost recovery and more production from the field. Q: Japan is also complaining about the ceiling of the contract in their negotiations for developing Azadegan Oil Field. What is the main problem? A: When we speak about the development of a hydrocarbon field, we may face unexpected technical factors which do not obey a specific formula. We need to make an accurate and precise assessment of the project to remove such bottlenecks. Q: Have foreign contractors and companies not raised the issue of being obliged to employ domestic resources at a specific percentage? Norways Statoil and Irans Sadra were at loggerheads over the delay in a South Pars project. A: We have passed a law obligating foreign companies to recruit Iranians and we cannot discuss this issue in our negotiations. Our 20-year perspective plan, obliging Iran to become top Southwest Asian power, envisages foreign investments. These objectives have to be met.
کد خبر 79648