Baku, Azerbaijan, Nov. 23
By Fatih Karimov- Trend:
Iran's upstream oil and gas industry needs $30 billion in investment annually, Mansour Moazzami, an advisor to Iran's oil minister said.
Meanwhile only $60 billion were invested in the sector during the first four years of the fifth five-year economic development plan (2010-2015), equal to only 50 percent of the needed figure, Moazzami said, the oil ministry's SHANA news agency reported Nov. 23.
Oil sector was neglected during the former administration, he said, adding Iran's new oil contracts -IPC are aimed at attracting foreign investments for petroleum sector.
All existing oil contracts including Iran's former buy-back contracts have been studied for preparing the IPC.
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.
The IPC contact offers exploration, development and production of the oil and gas fields in an integrated package. However the ownership of the fields will not be transferred to the foreign side.
The Islamic Republic will introduce the new oil and gas contracts at a conferences in Tehran in which about 50 projects worth $185 billion will be unveiled for investment.
Foreign oil firms are in intense talks to return to the Iranian market once sanctions on the country are lifted. 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.
Iran 's oil output was about 3.7 mb/d in 2011, but it has decreased due to western sanctions imposed on Iran in mid-2012.