Gov’t to Approve New Oil Contract Model This Week: Iran’s Oil Minister

TEHRAN (Tasnim) – Iranian Oil Minister Bijan Namdar Zanganeh said Monday a new model for oil contracts is expected to be approved by the government in the coming days.

Gov’t to Approve New Oil Contract Model This Week: Iran’s Oil Minister

"We are awaiting government approval due to be out on Wednesday," Zanganeh said at an energy conference in Tehran on Monday.

"Our priorities will be jointly owned oil and gas fields, as well as those in which we are after improved oil recovery,” he added, Shana reported.

The new oil and investment contract for international firms, known as the Iran Petroleum Contract (IPC), is planned to replace Iran’s buyback oil deals. Under a buyback deal, the host government agrees to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.

Iran has been working on the oil contract model for the past two years. The country hopes to draw as much as $50 billion a year from major oil companies such as Italy’s Eni SpA and France’s Total to develop its oil and gas fields.

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