Terms of Iran's New Oil Contract Model Flexible: Official
TEHRAN (Tasnim) – A senior Iranian oil official said on Saturday that the country’s new model contract for oil and natural gas projects will have flexible terms and conditions.
"What we are offering is a very flexible model of contracts, it is integrated exploration, development, production all those terms," Mehdi Hosseini, head of Iran's oil and gas contracts restructuring committee, told Reuters.
"The fee per barrel that is paid as profit to the company is flexible based on the risk which is considered ... Higher risk, higher reward, lower risk, lower reward," he added.
"Anything will be adjusted, depending on the different stages of the operations."
Iran will offer some 52 oil and gas projects - both brown and green fields - including around 20 for exploration, Hosseini further said.
The contracts last for 20 years and "in some special cases it could also be extended to 25 years," he said, not including a period for exploration deals.
"We are offering some projects in the Caspian sea and also very low-risk areas in the Persian Gulf," he said.
Iran will announce a new development contract model at conferences in Tehran on November 28-29 and in London in February.
