Iran's new petroleum development contract prioritizes joint fields
Baku, Azerbaijan, Nov.8
By Fatih Karimov - Trend:
Iran's new contract model, known as the Iran Petroleum Contract (IPC), prioritizes the development of joint oil and gas fields.
Mehdi Hosseini, the head of the Petroleum Ministry Oil Contracts Revision Committee, said it will be more profitable for a company to invest in the development of such fields, Iran's ISNA news agency reported on November 8.
He added that Iran wants large international companies to come back to Iran's energy market.
"If the international sanctions are removed, such companies will certainly return to Iran."
"In case the sanctions are annulled, a new model of oil contracts will be unveiled in February in London," he noted.
The new development contracts will be finalized soon and presented to the cabinet for approval, he said, adding that the new model of contracts does not need to win the endorsement of parliament.
Iran is in talks with six Western powers to reach a deal to limit Tehran's nuclear program - which could end sanctions on oil investment and trade with Iran. The deadline to reach a deal is Nov. 24.
Iran had delayed a widely anticipated London conference during which it would offer oilfields, projects and its final investment contract to foreign oil companies until February next year from November, due to sanctions on its oil sector.