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Iran outlines its main advantage in post-sanctions period

Business Materials 26 November 2015 15:17 (UTC +04:00)

Baku, Azerbaijan, Nov. 26

By Umid Niayesh- Trend:

Low cost of oil production in Iran is the Islamic Republic's main advantage in the post-sanctions period, Mohsen Ghamsari, executive director for international affairs at the National Iranian Oil Company (NIOC) said.

The oil price is not expected to surge in the new future, Ghamsari said, adding in this case energy market will focus on fields which can provide efficient, long-term output with low cost, justified investment, Mehr news agency reported Nov. 26.

Enjoying huge oil and gas reserves, Iran has the advantage of increasing output in very low costs, the official said.

Following the nuclear deal, international companies are prepared to invest in Iran's oil and gas fields, Ghamsari added.

Iran, in its turn, is going to introduce new oil contracts to global investors, in order to fulfill its responsibility to safeguard world energy security, he noted.

Ghamsari further said that the new model of oil contracts namely the Iran Petroleum Contract (IPC) has been specifically designed to increase the attractiveness of Iranian oil projects for foreign investors and ensure the energy consumers across the world about continuous, long-term supply from Iran's oil and gas fields.

Iran is expected to present its new model of oil contracts within the coming week.

Iranian Oil Minister Bijan Namdar Zanganeh has said that a number of oil projects in the framework of the IPC will be presented to domestic and foreign companies.

The IPC offers exploration, development, and production at oil and gas fields in an integrated package. However, the ownership of the fields will not be transferred to the foreign side.

The IPC is also aimed at transferring new technology to Iran. Iranian experts should be present at the project sites alongside the foreign companies' representatives to familiarize themselves with the modern technologies used in the field.

Iran's oil output was about 3.7 mb/d in 2011, but it has decreased due to western sanctions imposed on Iran in mid-2012.

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