BP doesn't confirm an oil deal in Iran

Business Materials 8 October 2015 09:43 (UTC +04:00)
British Petroleum rejects achieving any agreement with Iran to develop this country’s oil fields.
BP doesn't confirm an oil deal in Iran

Baku, Azerbaijan, Oct. 7

By Dalga Khatinoglu - Trend:

British Petroleum rejects achieving any agreement with Iran to develop this country's oil fields.

Iran's semi-official Tasnim news agency reported on Oct.7 that Iran has transferred the development of two oilfields to British oil major BP plc.

Toby Odone Deputy Head at BP Press Office told Trend Oct.7 that "it is far too early for that".

Tasnim quoted an unnamed "informed source" that during the last month's talks between managers of BP and Iranian Oil Ministry, the development of two oilfields has been transferred to BP within the framework of Iran's new model of oil contracts.

That was while, the Iran Petroleum Contract (IPC) has yet to be unveiled and its content is unknown to Iranian companies and experts.

Odone said that "we have said for some time that we would be interested in looking at opportunities in Iran once sanctions permit and once the rules are clear. We are fully in compliance with the current sanctions regimes in place".

Iran and six world powers reached a comprehensive nuclear deal in July. This agreement is currently under study by the Iranian Parliament. Also, the IAEA should ratify Iran 's commitment to its obligations in an agreement between Tehran and the international body. It is expected that the sanctions will be removed in the first half of next year.

Iran announced earlier that it is preparing to introduce new designed IPC to foreign companies to absorb $185 billion investment to develop 45 oil and gas fields.

Iran's current oil production level is 2.86 million barrels per day(mb/d), but the country says 500,000 barrels per day would be added to production level as soon as the sanctions on Iran be lifted, then additional 500,000 barrels per day of crude oil production will be carried out.

The country planned to increase oil production to 6 mb/d by 2020.

A number of Iran's oil projects, to be carried out based on the IPC, will be introduced to the foreign investors in the conference, which is to be held in Tehran in the Iranian month of Aban (October 23-Novemebr 21), according to Iranian Oil Minister Bijan Namdar Zanganeh.

On Sept. 26, Zanganeh said Iran would hold a conference to unveil its new oil contracts in Tehran instead of London.

The new model of oil contracts will be announced based on participation between Iranian and foreign companies, so that their investment will be secured for a long period of time.