No parliament approval needed for Iran’s new oil & gas contracts

Business Materials 9 August 2016 13:48 (UTC +04:00)

Baku, Azerbaijan, Aug. 9

By Fatih Karimov – Trend:

Iran’s new oil and gas contracts (IPCs) model does not need the parliament’s approval, Abdulhamid Khedri, an Iranian MP said.

The new model of contracts is under study in a special parliamentary committee, which is charged with investigating the IPCs, Khedri, who is the committee member said, SHANA news agency reported Aug. 9.

He further said there is no need in parliament’s permission for the new model of oil contracts, adding that parliamentary oversight of these contracts is enough.

Last week, the government approved the framework of Iran’s new oil and gas contracts (IPC) model.

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 was submitted to the parliament for study.

The Resistance Economy Headquarters, chaired by Iran’s First Vice President Eshaq Jahangiri, approved the IPCs July 12 after some amendments.

In 2015, the Iranian Oil Ministry unveiled its new oil contracts called IPCs (Iran Petroleum Contracts) aimed at luring foreign funds and technology. To get an IPC contract, foreign companies must find an Iranian partner. The IPCs allow foreigners to have a share in production, but they wouldn't have any share in reserves.

Iranian hardliners oppose the IPCs, saying the contract model 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.