Oil share to reach 15% of Iran’s GDP

Business Materials 28 November 2015 17:55 (UTC +04:00)

Baku, Azerbaijan, Nov. 28

By Fatih Karimov- Trend:

The share of oil in Iran's GDP will increase to 15 percent by next fiscal year (to start March 2016), Masoud Nili, an economic affairs advisor to the president said.

He made the remarks in a conference held in Tehran to present the country's newly designed oil contracts, called the Iran Petroleum Contract (IPC), the IRNA news agency reported Nov. 28.

Some of the world's biggest names in oil, gas, and petrochemicals industries gathered in Tehran Nov. 28 to attend the conference, during which Iran's Oil Ministry unveiled its IPC model contracts. Over 300 companies attended the event.

Nili said that the oil sector share in Iran's GDP has never fallen below 10 percent.

The oil sector has had a decisive role in Iran's economy, he said, adding that the government uses oil revenues for investment in infrastructures and social services.

During the past 24 years, about 53 percent of the government incomes were supplied by oil industry, which was spent in various fields, Nili said.

He added that inflation decrease has an important role in attracting foreign investment.

President Hassan Rouhani's senior advisor also said that Iran's oil output was almost stable between 3.5-4.5 million barrels per day in recent years.

"As a result the country's oil income was seriously affected by price fluctuation."

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.

Some 50 oil and gas projects within the framework of the IPC will be presented to domestic and foreign companies.

The IPC offers exploration, development, and production at oil and gas fields in an integrated package. However, the ownership of the fields will not be transferred to the foreign side.

The IPC is also aimed at transferring new technology to Iran. Iranian experts should be present at the project sites alongside the foreign companies' representatives to familiarize themselves with the modern technologies used in the field.