Iran plans to draw foreign investment worth around $185 billion to boost oil, gas and petrochemicals industries by 2020, said a senior ministry official.

The implementation of Iran Petroleum Contract (IPC) is one of the many strategies Tehran has adopted to attract investments and upgrade the oil industry, Amir Hossein Zamani Nia, deputy oil minister for international affairs, was quoted as saying in an Iran Daily News report, which cited an interview with Tasnim News Agency.

He added that the fresh investment will cover all sectors of the oil industry in a five-year period.

The official further said $85 billion of the investment will go to the industry's upstream sector.

The IPC is to replace Iran's buyback oil deals. Under a buyback deal, the host government agrees to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.

However, 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.