Baku, Azerbaijan, May 7
By Khalid Kazimov - Trend:
Iran's First Vice President Eshaq Jahangiri has expressed support for the newly designed contracts, namely the Iran Petroleum Contracts (IPCs).
Jahangiri said that Iran's Oil Ministry seeks to obtain knowledge and technology regarding oil industry through IPCs, SHANA news agency reported.
In the meantime, Iran plans to lure foreign investment through the IPCs, he added.
Saying some people have criticized the new model of oil contracts, he added that the IPCs are of high interest for foreign investors.
Iranian Oil Ministry said that the country needs $400-$500 billion worth investments 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 IPCs.
The IPCs are aimed at introducing 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 per 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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