Iran to Unveil Contracts By Year-End

Iran will introduce its new oil and gas contracts during a conference to take place in London in December, Minister of Petroleum Bijan Zangeneh said as reported by several Iranian media outlets.

“New contracts with foreign companies will be signed in the IPC (Integrated Petroleum Contract) framework which I think will be more attractive,” Zangeneh said, adding that Teheran is about to offer nearly 50 oil and gas projects worth $185 billion.  

Under the new contracts, Iran will cede exploration, development and production operations on an oilfield exclusively to a foreign contractor. In exchange, foreign companies will have to transfer technology.

Anglo-Dutch Royal Dutch Shell, France’s Total, UK’s BP and Italy’s Eni are at the forefront. The four companies already voiced interest in the area. Wintershall and German companies will try to get a share of the contracts too, as suggested by the interest paid by the BASF subsidiary in July. 

Iranian gas strategy seems to hinge on stronger ties with European companies, and also on renewed cooperation with Azerbaijan. 

‘Iran's deputy oil minister for international affairs and trade says the Islamic Republic of Iran and the Republic of Azerbaijan plan to expand their cooperation in oil and gas sectors under new international conditions’ National Iranian Gas Company wrote on Wednesday.