Iran Aims For Tempting New Oil Contracts Soon


DUBAI, Oct 8 (Reuters) - Iran's new development contracts will be finalised soon and presented to the cabinet for approval, its oil minister said, a sign that Tehran is pushing ahead with effort to lure foreign investors once sanctions are lifted.

Iran wants Western oil companies to revive its giant, ageing oilfields and develop new oil and gas projects and has been preparing a new investment model for oil contracts as part of its drive to win back Western business.

The OPEC producer is in talks with six Western powers to reach a deal to limit Tehran's nuclear programme - which could end sanctions on oil investment and trade with Iran. The deadline to reach a deal is Nov. 24.

"The final touches are being made to this type of contracts at the Petroleum Ministry. It will then be submitted to the government for approval," Iranian Oil Minister Bijan Zanganeh said, according to the ministry's news agency Shana on Wednesday.

He added that the new model of contracts does not need to win the endorsement of parliament, Shana reported.

Iran had delayed a widely anticipated London conference during which it would offer oilfields, projects and its final investment contract to foreign oil companies until February next year from November, due to sanctions on its oil sector.

"In case the sanctions are annulled, a new model of oil contracts will be unveiled in London," from Feb. 23 to Feb. 25, Shana cited Mehdi Hosseini, the head of the Petroleum Ministry Oil Contracts Revision Committee, as saying.

Iran's new contract model, known as the Iran Petroleum Contract (IPC), aims to tempt back oil companies with 25-year deals.

Western sanctions imposed in 2012 on Iran for its nuclear programme have choked Tehran's oil production. Output is down a million barrels per day (bpd) since the start of 2012 at 2.7 million bpd, depriving it of billions in oil revenue.

Top officials say Iran can raise production to 4 million bpd within six months of sanctions being lifted. Western experts are more conservative, saying 3 million to 3.5 million bpd is more likely.

Zanganeh had met some Western oil executives at OPEC's previous meetings in Vienna, including Italy's Eni, Royal Dutch Shell and Austrian oil and gas group OMV .

(Reporting by Rania El Gamal, editing by William Hardy)

Copyright 2016 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Tom Williams | Oct. 9, 2014
Does Iran really think that anyone would work oil/gas projects in Iran? I suppose they would but after 10 years plus in Dubai - Nothing/NADA was ever shipped to Iran unless 100% paid before it went to the docks... Business requires Trusts and Irans past experience is not pleasant nor profitable and with very high risks of Force Majeure Unless they have a pipeline to the Indian Ocean ports/terminal would I trust the opening of the Straits of Hormuz??? Who pays the insurance?? OBTW how about Sharia Law and contracts with non-Islamic partners?? - Truth in Lending and Partnering is required...


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Project Controls Specialist
Expertise: Project Management
Location: Minneapolis
Quality Assurance and Training Specialist Job
Expertise: HR - General|HR - Trainer / Instructor|Risk Management
Location: Minneapolis, MN
Project Manager
Expertise: Engineering Manager|Project Engineer
Location: Columbia, SC
search for more jobs

Brent Crude Oil : $50.79/BBL 1.30%
Light Crude Oil : $49.96/BBL 1.10%
Natural Gas : $2.77/MMBtu 2.12%
Updated in last 24 hours