Iran prepares to tender 17 recently explored oil and gas blocks with its to-be-introduced oil contracts types, according to an Iranian energy official.
“Of 40 exploration blocks, 17 blocks are ready when the new oil contracts are to be unveiled in London,” the Iraninan energy news agency Shana quoted Hormuz Qalavand, director of exploration at National Iranian Oil Company, or NIOC, as saying on Tuesday.
Iran is aiming to boost its energy sector, which has been hit by crippling wide range of sanctions due to disputes over its nuclear program, if the negotiations with world powers lead to a final deal by June 30.
The director also said his country is in talks with European companies to draw them back for investment in Iranian oil and gas sectors as the new type contracts replacing buyback deals are aimed at increasing the companies' appetite.
Iran's current buy-back model offers an international oil company, IOC, a fixed price in exchange for oil and gas it produces from Iran's fields as the company provides the investment, equipment and technology. Iran prevents IOCs to own any equity in the operation field.
In the new model, known as Iran Petroleum Contract, the National Iranian Oil Company will go into joint ventures for production of crude oil and natural gas with IOCs, which will be paid by shares in production.
By Furkan Naci Top
Anadolu Agency
furkan.top@aa.com.tr