TEHRAN, Iran – The new Iran Petroleum Contract (IPC) should be unveiled in December at a conference in London, according to news service Shana.
Iran has developed the IPC model to attract international companies to help develop its fields. The country reportedly has a backlog of more than 50 oil and gas projects that need at least $185 billion to go forward.
Minister of Petroleum Bijan Zangeneh said: “New contracts with foreign companies will be signed in the IPC framework which I think will be more attractive.” He added that Iran would unveil details of available upstream oil projects at the conference.
The previous system that operated before sanctions were imposed against Iran involved buyback deals under which the government paid the contractor an agreed price for all volumes of hydrocarbons it produced.
Under the IPC framework, Iran will cede exploration, development, and production operations on an oil field exclusively to a foreign contractor. Foreign companies in turn must demonstrate commitment to optimal and sustainable production from the field and transfer of technology.
National Iranian Oil Co. (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.
Iran claims that Royal Dutch Shell, Total, BP, and Eni have all indicated interest in investing under the new terms.
As for the country’s ongoing offshore development projects, Shana says three more wells have been spudded at Phase 12 of the South Pars gas project in the Persian Gulf.
Raousl Fallahnejad of operator Pars Oil and Gas Co. said well acidizing, perforation, and production test operations are being performed and the wells should become operational shortly. Phase 12 is now 98% complete, he added, and set to be fully operational by winter.
Redevelopment of the offshore Reshadat oil field, currently more than 78% complete, will add 80,000 b/d to Iran’s crude oil output.
Sarab Azad, an official for the project, said early production will start once downhole pumps have been repaired. Five new wells at the field are fully spudded and ready for operation.
Reshadat, discovered in 1965, was initially developed by Italian company Iminico.