Iran wooing oil firms in Vienna with 20-year contracts

Iran revealed plans to offer oil development contracts that last "close" to 20 years to entice international oil companies back to Iran, according to Iranian Oil Minister Bijan Zanganeh, International Oil Daily reported.

A cornerstone of the veteran oil minister's plans to jump-start Iran's battered oil and gas industry since he assumed the post in August has been reworking of commercial terms, which companies widely criticized even before US and EU sanctions drove almost all foreign oil operators out of Iran.

He told International Oil Daily last month in Tehran that a senior body of oil experts was preparing to roll out a new type of contract for oil and gas fields at a conference in London in March, flagging the intention to lengthen the contract terms.

"The main thing in this [new] structure is the long-term involvement in Iran's oil development and operations," he told reporters in Vienna ahead of the Dec. 4 Opec meeting. When asked whether the contracts would be extended to 25 years, more in step with international standards, Zanganeh said they are aiming for "close to 20 years."

Zanganeh plans on meeting with IOCs during his time in the Austrian capital, but declined to name them.

Some majors have quietly opened communication channels with Iran, although they vow not to invest until the sanctions are lifted, industry sources say.

Iranian buyback contracts typically lasted for less than 10 years, after which the foreign company hands over operations to National Iranian Oil Co. The period of time, much shorter than most global oil development agreements, means companies are not incentivized to invest capital and bring top technology.

Industry sources in Vienna remain skeptical whether such an extension of contract length alone will be enough to attract cash from IOCs, given the wealth of oil and gas investment opportunities globally, such as shale developments in North America or offshore acreage in Africa -- both of which carry much lower political risk.

Iran has vowed to offer better commercial terms than Iraq, which locked major and Asian national oil companies into tough fixed-fee terms. But it is not clear whether Iran will open its discovered, producing world-class oil fields, as Iraq did.

So far it has indicated that it needs help with undeveloped fields that straddle international borders such as fields in the Caspian and gas developments at South Pars, which is shared with Qatar's supergiant North Field.

Separately, Zanganeh said Iran "hopes" to raise exports of crude following the interim agreement signed between Tehran and six world powers last month, but admitted it will be difficult.

He said Tehran's 2014 budget expects exports of 1.2 million barrels per day of crude and 300,000 b/d of condensate. Iran is currently exporting "more than 1 million b/d" of crude now. In 2011, Iran was exporting 2.2 million b/d of crude.

Georgia and Israel agree on legal employment
Georgia and Israel agree on legal employment
Israel Canada to build 450 prestige homes in Hod Hasharon
Israel Canada to build 450 prestige homes in Hod Hasharon
Delegation of Israeli doctors in Azerbaijan to continue providing support to Azerbaijani soldiers (PHOTO/VIDEO)
Delegation of Israeli doctors in Azerbaijan to continue providing support to Azerbaijani soldiers (PHOTO/VIDEO)
Loading Bars
Latest
Submarine cable to connect electrical networks of Georgia, Europe to be additional direct channel for telecommunication traffic
IMF, World Bank urged to contain pandemic with fair, efficient distribution of vaccines
South Korean battery makers agree last-minute deal in boost to Biden's EV policy
Egypt, Sudan reject Ethiopian proposal for data sharing on Renaissance dam
Bezos, Musk top Forbes' record-setting billionaire list
Turkey registers more than 52 600 new coronavirus cases
China-Brunei trade grows by over 70 pct in 2020
Argentina's economy minister heads to Europe to woo finance officials over debts
US boosts imports of Turkish-made clothes
Turkey sends off 2nd boron export train to China
First kidney transplant performed in Turkmenistan
Bahar Azadi gold coin price continues to fall in Iran
Iran unveils data of gasoline and petrochemicals exports
New transmission line to provide opportunities for both Georgia’s and EU energy network - expert
Weekly review of key events in Azerbaijan's transport sector
China fines Alibaba record $2.75 billion for anti-monopoly violations
Italy reports 344 coronavirus deaths on Saturday, 17,567 new cases
Azercell’s “Kabinetim” mobile app exceeded 1 million downloads
Pakistani FM to visit Tehran
Funeral for UK's Prince Philip to be held on April 17
Pinterest becomes latest platform to appoint Turkey representative
Italy's economy seen growing 4.1% this year
Volume of cargo loaded, unloaded in Iran’s Bandar Lengeh port announced
Turkmenistan’s growth of trade turnover in 1Q2021 announced
Turkish electrical goods' 1Q2021 export to Uzbekistan spikes
Azerbaijani president's assistant talks Turkic Council media co-op's systematization
Hungary considers Turkic Council member states important partners
Iran's Energy Exchange announces products to be on sale on April 11
Uzbekistan ready to actively partake in restoring Azerbaijan's liberated territories
Azerbaijan confirms 2,192 more COVID-19 cases, 1,554 recoveries
Turkey did its best in media coverage of Azerbaijan's Patriotic war - presidential administration
Azerbaijani president's assistant meets with Turkic Council's secretary-general
Briefing of Turkic Council's high-ranking media officials held in Baku (VIDEO)
Anti-Turkic campaigns periodically carried out - Azerbaijani president's assistant
Azerbaijan's victory in Second Karabakh War is victory for entire Turkic world - top official
Azerbaijan working to develop ties between Turkic states - president's assistant
Turkic Council developing roadmap for better co-op with Turkic-speaking countries
Turkic-speaking countries to continue to support Azerbaijan - Turkic Council
Armenia's refusal to provide maps of mines on Azerbaijan's lands is concerning - ambassador
Turkic Council's meeting held in Baku (PHOTO)
Iran reveals COVID-19 data for April 10
Kazakh, Uzbek PMs launch construction of new 'Central Asia' int'l co-op center
Turkish Ambassador: I've never separated Azerbaijan and Turkey, both are homeland to me
Buta Airways to Start Operating Flights to Zhukovsky Airport
Turkey's support for Azerbaijan in Karabakh war will always be in our memory - President Aliyev
Azerbaijan's MoD organizes visit for foreign military attaches to Air Force military unit
Turkish-Azerbaijani fraternal relations are at highest level today - President Aliyev
Iran's exports via Jolfa border checkpoint increase
Georgia reports 506 new coronavirus cases for April 10
SOCAR's capex to moderate due to SGC, STAR refinery’s commissioning
Certain licenses issued to setting up enterprises in Iran's Markazi Province
Turkey unveils 2M2021 data on freight, passenger traffic through Ankara Esenboga Airport
Azerbaijani oil prices up
Fitch Affirms SOCAR at 'BB+'
Turkmenistan's state budget revenues surpass initial forecast
Georgian TBC Leasing's secured debt rating equalizes with its Long-Term IDR
Azerbaijani president awards former Turkish ambassador with 'Dostlug' order
President Ilham Aliyev receives Turkish Ambassador to Azerbaijan Erkan Ozoral (PHOTO)
Turkmenistan's GDP grows in 1Q2021
Weekly review of Azerbaijani currency market
Iranian currency rates for April 10
Azerbaijan has favorable investment climate - Turkish MUSIAD
Azerbaijani Mine Action Agency continues to clear Gubadly, Zangilan, Jabrayil from mines
India reports a record 145,384 COVID-19 infections
Armenia set up booby traps on Azerbaijan's de-occupied lands - Mine Action Agency
Azerbaijan's rhythmic gymnasts 2-nd in online tournament organized by Finnish Gymnastics Federation
Azerbaijani gymnastics team captures silver in Egypt (PHOTO)
China's top market regulator imposes penalty on Alibaba Group over monopoly conduct
Iran's Isfahan producing 2,100 tons of medicinal herbs
Japanese entrepreneurs intend to increase imports of Kyrgyz honey
Austrian companies eye contribution to Georgian ports' expansion - ministry
Turkey reports 55,791 new COVID-19 cases
Germany to amend law for nationwide COVID-19 response
World Bank says Azerbaijan's consumer market to grow till 2023
Janssen's COVID-19 vaccine under EU review over blood clots
Number of COVID-2019 cases across globe up by over 718,000 in past day, says WHO
Poland's COVID-19 cases top 2.5 mln
Georgian-Lithuanian co-op facilitates freight transport between China, Europe - Ministry
US accelerator to provide Azerbaijani startup project with big investments
Eurowings to start flights from Dusseldorf to Georgia
NASA's Mars helicopter to attempt first flight
Health Minister hails vaccination in driving down COVID-19 severity in Turkey
Saudi-led coalition intercepts bomb-laden drone towards border city
Azerbaijani president expresses condolences to PM of UK
UN interested in intensifying ties with Azerbaijan - President of General Assembly
Azerbaijani FM, Sec-Gen of Turkic Council discuss issues of mutual interest (PHOTO)
"Georgia Capital" investment company to sell part of its business
Iran's only option on negotiation table - US lifting sanction - Iran’s ambassador to IAEA
Turkmen Helath Ministry opens tender for purchase of medical supplies
South Korean PM to visit Iran for Seoul-Tehran Cooperation
Speaker of Azerbaijani parliament meets with president of 75th session of UN General Assembly (PHOTO)
Azerbaijani president expresses condolences to Queen Elizabeth II
Azerbaijan clearing territory for new settlement of mines in Zangilan district
Azerbaijan aims developing use of wind energy
Russian, Turkish presidents call for restoration of transport infrastructure of South Caucasus
Azerbaijan actively participates in implementation of int’l projects within BTK and North-South corridors
State Oil Company of Azerbaijan digitizes information on oil and gas wells in corporate database
Azerbaijani, Turkish armies Joint Operational-Tactical Exercises end (PHOTO/VIDEO)
International Bank of Azerbaijan opens tender to buy network equipment
Russia always ready for settlement option supported by sides of Karabakh conflict - Foreign Ministry
All news