Baku, Azerbaijan, Aug. 3
By Fatih Karimov – Trend:
Iran's government approved the framework of Iran’s new oil and gas contract (IPC) model, Mehr news agency reported Aug. 3.
The framework which was already approved by the country's top economic advisory body, the Resistance Economy Headquarters, was ratified at a cabinet session Aug. 3, headed by President Hassan Rouhani.
The draft contract model will be submitted to the parliament for final approval.
The Resistance Economy Headquarters, chaired by Iran's first vice president Eshaq Jahangiri approved the IPC July 12 after some amendments.
In 2015, the Iranian Oil Ministry unveiled its new oil contracts called IPC (Iran Petroleum Contracts) aimed at luring foreign funds and technology. To get an IPC contract, foreign companies must find an Iranian partner. The IPC allows foreigners to have a share in production, but they wouldn't have any share in reserves.
Iranian hardliners oppose the idea of IPC, saying that it is against the national interests, but foreign companies, including France's Total, have said repeatedly that the older type of Iranian oil and gas contracts are not attractive anymore.