Minister: Iran to Unveil New Oil Contracts in London Soon.
TEHRAN (FNA)- Iranian Oil Minister Bijan Namdar Zanganeh announced on Friday that his ministry plans to hold a conference in London to put to tender investment in energy fields that need further development.
"Iran will introduce its new oil contracts to a London conference planned for December as the country seeks to boost oil extraction from its oilfields with the help of foreign companies," Zanganeh told reporters today.
The Iranian oil minister reiterated that new contracts with foreign companies will be signed in the Integrated Petroleum Contract (IPC) framework, and said, "I think it will be more attractive."
Under the new formula, Iran will cede exploration, development and production operations on an oilfield exclusively to a foreign contractor. Foreign companies will be required to commit to optimal and sustainable production from the field and transfer of technology.
In April, Head of the Oil Ministry's Committee for Oil Contracts Revision Seyed Mehdi Hosseini said that the Iranian Oil Ministry is negotiating with giant oil companies over investment in Iran's energy sector, and the revised oil contracts will be presented in a gathering in London in the coming months.
"As planned, the revised contracts will be unveiled in the presence of representatives of all major oil and gas companies in London in September 2015," Hosseini told FNA at the time.
He noted that the outcome of the recent nuclear negotiations in Lausanne, Switzerland, will have positive outcomes for the conclusion of contract with foreign oil firms.
Hosseini said the revision of oil contracts and removal of such obstacles as international sanctions are expected to persuade international oil companies to return to Iran's energy sector.
He said enhanced oil recovery and transfer of the state-of-the-art technology are the most important elements for revising the oil contracts.
"We are benefitting from all experiences of the past in order to improve the structure of oil contracts while taking into account mutual benefits," he added.
Hosseini said buy-back deals brought Iran's oil production capacity to more than four million barrels a day and attracted tens of billions of dollars of investment in the oil and gas sectors.
In 1987, Iran's parliament revised the Petroleum Law and finally buy-back contracts were defined.
Iran first signed buy-back deals in the 1990s when the country was still reeling from the destructive impacts of Iraqi war (1980-1988).
[c]2015 Fars News Agency. All rights reserved Provided by SyndiGate Media Inc. ( Syndigate.info ).
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|Publication:||FARS News Agency|
|Date:||Aug 7, 2015|
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