Thursday 28 March 2024
 
»
 
»
ATTRACT FOREIGN INVESTORS

Iran to unveil new oil contracts in coming weeks

ANKARA, September 18, 2015

Iran will unveil new oil development contracts in the coming weeks aiming to attract foreign investors and oil buyers once sanctions on its energy sector are lifted, the Oil Ministry's website Shana reported on Friday.
 
Under a deal reached with six major powers in July, the Opec producer agreed to curb its nuclear programme in exchange for an end to economic sanctions imposed on the country over its disputed nuclear work.
 
The sanctions imposed on Iran in 2012 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 of dollars in oil revenue.
 
Now they are widely expected to be lifted in 2016, Iran needs Western oil companies to help to revive its giant, ageing oilfields and develop new oil and gas projects and the new oil contracts are part of its drive to attract Western investors.
 
"First, the new contracts will be unveiled in Tehran in the middle of the month of Aban (which starts on October 23)," Shana quoted Iran's Deputy Oil Minister Rokneddin Javadi as saying.
 
"Then more details will be revealed at a conference in London."
 
The Oil ministry officials had earlier said that the new contracts would be presented to investors at a conference in London in December.
 
Iran has repeatedly delayed the widely-anticipated London conference, during which it would offer oilfields, projects and its final investment contracts to foreign oil companies.
 
Iranian Oil Minister Bijan Namdar Zanganeh said in August that a new model for oil contacts that allows access to regional and international markets and paves the way for long-term strategic cooperation with major companies have been prepared.
 
The new contract model will have similar terms to a production sharing agreement, according to Iranian authorities.
 
Javadi also predicted that the international oil price would not drop below $40-45 per barrel in 2016.
 
Echoing Iran's official stance, Javadi said Iran plans to regain its oil production share in the oil market by pumping more oil after easing of sanctions. - Reuters



Tags: Oil | Iran | contracts | unveil |

More Energy, Oil & Gas Stories

calendarCalendar of Events

Ads