Iran to introduce new oil&gas contracts model

Oil&Gas Materials 7 August 2015 13:12 (UTC +04:00)

Baku, Azerbaijan, Aug. 7

By Fatih Karimov - Trend: Iran will unveil the new model of its oil contracts - named Iran Petroleum Contract or the IPC -to international investors in December, said Iran's oil minister Bijan Namdar Zanganeh.

The IPC will be unveiled in London in December, Iran's Shana news agency quoted Zanganeh as saying August 7.

"I think the new model of contracts, which will be signed within the IPC framework, will be more attractive," he added.

Foreign oil firms are in intense talks to return to the Iranian market once sanctions on the country are lifted, Mehdi Hosseini, head of Iran Oil Ministry's Contracts Revision Committee, said on July 4.

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

Tens of projects in the upstream sector of the oil industry have been defined within the framework of the new model of contracts, he noted.

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.

Edited by CN