Iran to disclose terms of new petroleum contracts in February

Business Materials 30 November 2015 15:38 (UTC +04:00)

Baku, Azerbaijan, Nov. 30

By Khalid Kazimov - Trend:

The details and terms of Iran's new model of oil and gas contracts are expected to be disclosed in February, an Iranian petroleum expert told Trend Nov. 30.

Mahmood Khaghani, a former director general at Iran's Petroleum Ministry, said that during a recent two-day conference held in Tehran, Iran's Petroleum Ministry only introduced the general framework of its new contracts and the exact terms of the contracts are expected to be disclosed in February after lifting nuclear sanctions imposed against the country.

Iran proposed its new model of oil and gas contracts called Iran's Petroleum Contracts (IPC) during a two-day conference held Nov 28-29 aimed at luring foreign investment to develop the country's aging industry. Meanwhile Petroleum Ministry offered about 50 oil and gas projects to be developed by foreign countries and the participation of local partners.

He added that the organizers of the conference believe that the event reached its goals to draw the attention of international companies, however there are several domestic critics.

Speaking about the domestic critics he said that the reason behind the opposition to the new contracts is political not technical.

He called on the critics in parliament to put the political motives aside and approach to the issue in question more rationally.

He also added that the conference created a chance for the representatives of international companies to meet and talk with the officials of Iran's local companies whom may become their partners in future.

Speaking about cooperation between Iran and Azerbaijan regarding gas resources in the Caspian Sea, he added that the new contracts may pave the way for further cooperation between the two neighboring countries.

National Iranian Oil Company (NIOC) holds a 10-percent share in the project for developing the Shah Deniz gas and condensate field in the Azerbaijani sector of the Caspian Sea.

Iran is increasing its gas export capacity in preparation for lifting western imposed sanctions against its financial and industrial sectors.

Iran expects the sanctions to be lifted at the first of coming year, as it is adhering to the terms of a July nuclear deal clinched between Tehran and the World's six major powers.

According to the July deal sanctions against Tehran are expected to be lifted or suspended in return for scaling down Tehran's controversial nuclear program.

Although the oil and gas prices have hit the rock-bottom in the global markets, international investors are considering Iran's petroleum projects with hope for big profits.

Iran has refined 95 billion cubic meters of natural gas during seven months of current fiscal year of the current Iranian calendar year (started March 21, 2015).

During this period, Iran produced 1.569 million tons of LPG (+62 percent), as well as 889,000 tons of ethane (+4 percent), about 537,000 tons of sulfur (+6 percent ) and 16.7 million cubic meters of gas condensate (+15 percent ).

Currently Iran's enriched and sweet gas production capacity stands at 700 million cubic meters per day (mcm/d) and 550 mcm/d.