Iran’s deputy oil minister: IPC hoped to attract tens of billions investment

Business Materials 9 August 2016 18:47 (UTC +04:00)

Baku, Azerbaijan, Aug. 10

By Dalga Khatinoglu – Trend:

The Iranian deputy oil minister says the new model of oil contracts, known as Iran Petroleum Contract or IPC, is hoped to attract $185 billion to the country’s oil and gas sectors over the next five years.

Amir Hossein Zamaninia told Trend that although attracting foreign investment depends on political and economic conditions, Iran believes the IPC is attractive in terms of investment environment of Iran, internal political stability, security, and high return on capital.

“For example, the return on capital from Iran’s petrochemical projects is above 25 percent,” Zamaninia added.

Iran unveiled the generalities of IPC in November 2015, offering 49 oil and gas projects to foreigners. The government approved the contract on Monday. The first deal based on the IPC is expected to be signed with foreign companies in the next months.

Iran envisages attracting $501 billion in oil, gas and petrochemical sectors in the next decade, half of which will be in upstream projects.

Iran is the largest holder of hydrocarbon reserves with 34 trillion cubic meters of gas reserves and 158 billion barrels of oil reserves.