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Iran Approves New Format of Oil Contracts

Source: www.gulfoilandgas.com 8/9/2016, Location: Asia

Iranís cabinet has ratified the draft of a new format of the countryís oil sector contracts which is hoped to bring in a considerable volume of foreign investment in the Iranian oil and gas projects.

The cabinet put its seal of approval on the new format of oil sector contracts in a session chaired by President Hassan Rouhani.

Based on the new format of contracts, the National Iranian Oil Company (NIOC) will set up joint ventures for crude oil and gas production with international companies which will be paid with a share of the output.

Accordingly, projects will have different stages of exploration, development and production and the contractors will be required to put emphasis on enhanced and improved recovery in projects.

Architects of the new contract say foreign companies can no longer dash out of their contractual obligations if sanctions are ever re-imposed on Iran. But critics have already cited certain shortcomings which they say need to be addressed by the Ministry of Petroleum.

In late May, Iranís First Vice President Ehsaq Jahangiri told Petroleum Minister Bijan Zangeneh that the format needs some amendments and called on him to address them and report to the cabinet.

Jahangiri also called on Zangeneh to invite all the critics of Iranís new oil sector contracts to listen their points and include them in amendments to the new contracts.

On a related front, Zangeneh told reporters last month that the first deals of the new generation of Iranís oil sector contracts will be awarded within the next few months.

He further emphasized that Iran expects the upcoming awards to help increase its crude production by 600,000 to 700,000 barrels a day over five years.

The bulk of the surge will come from fields in an area west of Karoun River along the Iraqi border, he was quoted as saying.

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Related Categories: Civil Works  Civil Works - Finishing works  Construction Contractors  Electrical Works  Engineering Procurement and Construction (EPC)  Engineering Procurement and Construction Management (EPCM)  General  Mechanical Works  Pipe Lines Installations  Steel Works 

Related Articles: Civil Works  Civil Works - Finishing works  Construction Contractors  Electrical Works  Engineering Procurement and Construction (EPC)  Engineering Procurement and Construction Management (EPCM)  General  Mechanical Works  Pipe Lines Installations  Steel Works 


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