Iran unveils new long term oil contracts
IRNA - Islamic Republic News Agency
Tehran, Feb 24, IRNA -- Iranian Oil Ministry introduced its new type of long term oil contracts in to attract back foreign investors on Sunday.
The new model, known as integrated petroleum contract (IPC), was unveiled on Sunday in Tehran in an energy forum.
The new model has been drawn up after four months of intensive studies followed by revising the oil by the Contracts Revision Committee appointed by Oil Minister Bijan Namdar-Zanganeh, Shana reported.
"In the new contracts, different stages of the petroleum industry (exploration, development and production) are awarded in an integrated manner," Mehdi Hosseini, head of the committee, said.
He said that buy-back contracts were one-sided and favored only Iran, adding that they are no longer attractive for foreign companies.
Hosseini said that the ownership of the reservoirs will not be transferred to foreign companies.
We must try to persuade foreign companies to enter high-risk zones of the petroleum industry because it is the rule of the game in the world that foreign companies account for the heavy costs of exploration. National funds should not be spent on exploration, said Hosseini, adding that risk and reward must match in the contracts.
Under the new contracts, the Iranian experts work shoulder to shoulder with foreign investor companies in order to get familiar with the state-of-the-art technology, he said.
Hosseini said one percent rise in the enhancement recovery will bring Iran 500 billion dollars in revenues.
We have tried our best to make maximum recovery from the fields until they are depleted, he said.
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