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Iran says studying new oil contracts

Business Materials 19 May 2015 08:58 (UTC +04:00)

Tehran, Iran, May 17

By Mehdi Sepahvand - Trend:

The legal department of Iran's presidential office is studying some new oil contracts, Iran's Vice President in Legal Affairs Mehdi Hosseini said.

He noted that after passed by the office, the contracts will be given to the government cabinet for final approval.

Hosseini further stated that tens of upstream projects have been defined within the contract for expansion, the names of which will be disclosed after political concerns are obviated, SHANA news agency reported May 17.

Meanwhile he said that an exact time for when the contracts - dubbed IPC standing for Iran Petroleum Contract - will be introduced cannot be given.

Hosseini went on to say that Iran has held talks with European and Asian sides that are likely to be included in the contract, maintaining, however, that no talks have been held so far with any American party.

The contract envisions relegating full oil industry projects (from exploration to development and production) together to foreign contractors so as to create lucrative opportunities for foreign investors.

The contracts are going to be a modification of the traditional buy-back risk service contracts.

"Developed and developing countries, which had downsized their relations with Iran after the imposition of sanctions on the country, are eager to resume the cooperation. So, a set of new rules and regulations have been set to attract foreign investments," Valiollah Afkhami-Rad, Iranian deputy industry, mining, and trade minister said May 17.

European countries can have a guaranteed and long-term trade with Iran, he said, adding that the government will secure their profitability.

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