Iran talks with EU companies over new oil contracts
Baku, Azerbaijan, Jan. 21
By Umid Niayesh - Trend:
Iran has held negotiations with leading international oil and gas companies about the new generation of its oil and gas contracts, Mehdi Hosseini, head of the Islamic Republic's Oil Ministry's Oil Contracts Revision Committee said.
Hosseini said that the committee has finalized modifying the buyback oil contracts, Iran's Mehr news agency reported Jan. 21.
He added that Iran has negotiated with majority of leading oil and gas companies from the EU and Asia during the modifying process of the buyback contracts' new generation. He refused to unveil the companies' name.
Hosseini also underlined that no negotiation was held with the US companies on the issue.
The new contracts will be implemented for a number of projects to explore, develop and increase the efficiency rate of the country's oil and gas fields, he said.
Under a buyback deal, the host government agrees to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.
Hosseini forecasted that once the international sections lifted new investment opportunities in the country's upstream sector of the oil and gas industry, worth tens of billion dollars would be provided for international companies.
Iran expects to attract foreign investors for its oil and gas industry with new model of the contracts.
Hosseini earlier said that the new contracts are sufficiently flexible and have been compiled in keeping with international conditions. He said Iran's new type of oil contracts will be much more attractive than Iraq's oil service contracts.
Iran's Oil Ministry plans to hold a conference in London in September to introduce new contract terms to international companies.
The London Conference aims to provide multinationals with opportunities for development of oil and gas fields in Iran. The two day Summit will discuss topics and issues from across the oil and gas value chain, providing delegates with an in-depth insight into Iran - post sanctions.
Edited by CN
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