TEHRAN, Iran – The Iranian Petroleum Ministry expects to finalize soon a new model for oil contracts, according to news service Shana.
Minister Bijan Namdar Zangeneh said the recommendations would be submitted to the country’s government for approval. No endorsement would be required from the Iranian parliament, he added.
Iran plans to reveal details at a three-day conference in London next year, reportedly to be attended by Rokneddin Javadi, managing director of National Iranian Oil Co. (NIOC).
The new arrangement, known as Iran Petroleum Contract (IPC), will replace the previous “buyback” contracts under which the government agreed to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.
Under the IPC, NIOC plans to set up joint ventures for crude oil and gas production with international companies which will be paid with a share of the output.