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Official: Iran’s first oil, gas tenders within IPC to be announced

Business Materials 5 May 2016 16:17 (UTC +04:00)

Baku, Azerbaijan, May. 5

By Khalid Kazimov - Trend:

An Iranian oil official has predicted that the country's first tenders within a new model of petroleum contracts namely IPC will be announced in late June.

"The draft of the new model of Iran's petroleum contracts are being studied by a new working group," Fars news agency quoted Managing Director of the National Iranian Oil Company Rokneddin Javadi as saying.

He expressed hope that the draft contract will be ready within the next two months.

Iranian Oil Ministry has earlier announced that the country needs $400-$500 billion in investment to develop its oil industry.

Developing the upstream sector of Iran's oil industry alone requires $200 billion. Therefore, the oil ministry is drawing up plans to lure foreign investors, by introducing the IPC.

The IPC is a framework that lays out the basic structure - and some details - regarding all future petroleum contracts in Iran. It was earlier announced that the country plans to boost oil production to 5.7 million barrels a day and gas output to 1.4 billion cubic meters a day by 2021.

By holding 157.8 billion barrels of recoverable crude oil reserves, Iran possesses the world's fourth largest reserves of crude oil. The Islamic Republic also holds 34 trillion cubic meters of proven gas reserves, sharing 18.2 percent of total global gas reserves.

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