Tehran - XINHUA
Iran's Oil Ministry unveiled a draft model of its new oil and gas contracts on Sunday to attract foreign companies to develop Iran's hydrocarbon reservoirs, Press TV reported. "In the new contracts, different stages of petroleum industry ( exploration, development and production) are commissioned in an integrated manner," Mehdi Hosseini, the head of Oil Contracts Revision Committee in the ministry, was quoted as saying. Hosseini said the draft dubbed "Iran Petroleum Contract" (IPC) is replacing "buy-back" contracts which are no longer attractive to foreign companies. Under the IPC, 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, he said, adding that however, "ownership of reservoirs is not transferable. " "Under new contracts, Iranian experts will work with foreign investment companies in order to become familiar with the latest technologies in the world," he said, adding that the contracts were flexible and had been developed in accordance with the new international regulations. Besides, Hosseini noted Iran needed 150 billion U.S. dollars worth of investments in its upstream oil industry in the next five years, which means the share of foreign investors had to increase in the contracts. Iran's Oil Ministry plans to hold a conference in London in July to introduce the new contract terms to international companies, according to Press TV. International companies withdrew from Iran as the United States and European Union imposed sanctions on Iran's oil and gas industries during the past few years, which caused a significant decrease in Iran's oil and gas exports and production. Last November, Iran and the P5+1 group signed a nuclear agreement which encouraged hopes for an investment comeback. Since the new government took office, Iran's Oil Ministry has focused efforts on regaining Iran's status in the international markets. During the World Economic Forum in Davos, Switzerland, Iran urged oil giants to invest in its oil and gas industries.