Iran to ink billions dollars of oil contracts by March 2017
Baku, Azerbaijan, Aug. 13
By Fatih Karimov – Trend:
Iran is expected to sign billions dollars of oil contracts before the next fiscal year, which is to start March 2017, Iranian Deputy Oil Minister Amir Hossein Zamaninia said.
Initial negotiations to sign the oil contracts with foreign companies are actively underway, Zamaninia said, oil ministry’s SHANA news agency reported Aug. 13.
“Preliminary agreements have been achieved in this regard,” he said.
Both European and Asian firms are interested to invest in Iran’s oil sector, Zamaninia said.
The new model of oil contracts increases the possibility of cooperation with leading international companies, Zamaninia said, adding the framework of Iran’s new oil and gas contracts (IPCs) is already approved by the government.
Once the new model of contracts is approved by parliament tenders will be held on oil projects, Zamaninia said.
“Iran’s oil projects will be proposed to investors within the next two months,” Zamaninia said.
“There is no doubt that we will sign big contracts in oil industry this [fiscal] year,” he added.
The new model of contracts is under study in a special parliamentary committee, which is charged with investigating the IPCs, Abdulhamid Khedri, who is the committee member, said Aug. 9.
Khedri 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.
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 won’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 is not attractive anymore.