...

Iranian government to revise new oil contract

Business Materials 31 May 2016 20:41 (UTC +04:00)

Baku, Azerbaijan, May 31

By Fatih Karimov - Trend:

Iranian First Vice President Eshaq Jahangiri has ordered the Oil Ministry to revise Iran's new oil contract model.

Jahangiri, in a letter to Oil Minister Bijan Namdar Zanganeh and Ali Aghamohammadi, a member of the Expediency Discernment Council, decreed them to submit the revision offers for government's approval as soon as possible, the Mehr news agency reported May 31.

The decree comes after the former MP, Ahmad Tavakkoli in a letter to Jahangiri criticized the new generation of Iran's oil contracts, dubbed IPC, saying the new model contract is against Iran's national interests and contradicts the Islamic Republic's strategic benefits.

The IPC was introduced in late 2015 as a measure to make more out of the lush Iranian oil business.

The contract model accentuates the foreign investments that would bring technology to Iran.

It also requires foreign investors to work with at least one Iranian partner.

A group of Iranian students affiliated with paramilitary Basij organization gathered outside the Oil Ministry's building in Tehran to protest against the IPC, suggesting the new model of the oil contract is against the Iranian constitution.

Following the protest, the parliament announced that investigations have not pointed to any breach of law by the IPC.

Earlier in November, Tehran hosted 137 companies from 45 countries in a two-day conference, during which the legal generalities of the IPC were introduced.

Latest

Latest