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Foreign oil firms in intense talks to return to Iranian market

Business Materials 4 July 2015 14:37 (UTC +04:00)

Baku, Azerbaijan, July 4
By Fatih Karimov - Trend:

Foreign oil firms are in intense talks to return to the Iranian market once sanctions on the country are lifted, said Mehdi Hosseini, head of Iran Oil Ministry's Contracts Revision Committee.

Intense talks are being held with delegations from European and Asian countries, so that they can return to the Iranian market promptly, he said.

If sanctions had not been imposed, the oil ministry would have not had any problem to introduce the new model of oil contracts in September, Iran's Shana news agency quoted Hosseini as saying on July 4.

The oil minister will soon outline the new model of oil contracts to the cabinet of ministers, Hosseini said, adding that tens of projects in the upstream sector of the oil industry have been defined within the framework of the new model of contracts.

Earlier this month, Hosseini said it is still not clear if the new model - named Iran Petroleum Contract or the IPC - will be introduced to international investors in September.

"Introducing the new oil contract will very much depend on Iran's political atmosphere," he said.

He said that the value of these contracts may exceed $100 billion.

The IPC will be a modification of the traditional buy-back risk service contracts and has been specifically designed to increase the attractiveness of Iranian oil projects for foreign investors.

It offers different stages of exploration, development and production to the contractors as an integrated package.

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