Iran is mulling 20-25-year term contracts for oil and gas development projects being awarded to foreign executives operating in Iran, said Ayeh Katebi, an adviser to the revising committee of Oil Ministry contracts on Monday, IRNA reported.
Unlike the third generation contracts, the new contract model offers foreign executives the prolonged projects up to 25 years, Katebi said.
She said that the previous models required contractors to leave the country 3 to 5 years after their projects were completed.
The former contract model was short-term which resulted in the sluggish transfer of technology in oil facilities, however, the new contracts have tackled this issue by prolonging the term of the development project.
On Sunday, Iranian Oil Ministry announced the details of the new type of oil contracts designed to attract foreign executives to develop Iranian oil and gas fields.
The new scheme was unveiled on the second and last day of a national seminar on oil contracts revision.
Representatives from international companies had attended the ceremony to declare the new contract model.