Iran plans to hold an oil and gas bidding round for foreign firms from late September, Ali Kardor, managing director of the National Iranian Oil Company (NIOC), was quoted as saying by the oil ministry’s news agency SHANA.
The first tender, which is likely to be for the South Azadegan oil field in southwestern Iran, will take place between Oct. 14 and Oct. 21, Kardor said.
“It’s likely that letters will be sent to foreign companies next week as per regulations so that the companies can present their information,” Kardor said.
Iran needs foreign investment to repair and upgrade its oil and gas fields and is also seeking the transfer of technology to its oil industry after a decade of isolation.
Three contracts are expected to be signed by the end of the year which will bring in around $10 billion in revenue for the country, Kardor said.
The launch of the Iran Petroleum Contract (IPC) for oil and gas development deals has been postponed several times as hard-line rivals of President Hassan Rouhani resisted any deal that could end the so-called buyback system under which foreign firms are banned from owning stakes in Iranian companies.
The new contracts are divided into three main categories: exploration, development of discovered fields that would lead to production, and enhanced oil recovery (EOR) to increase output.
The duration of the contract is up to 20 years from the start of development and can be extended for five years if EOR techniques are applied on a field.
Under the new contract model there will be technological assistance for storage facilities, equipment construction and to Iranian oil services companies, SHANA reported.
Iran has also signed seven new initial agreements with foreign oil companies, Kardor said according to SHANA.
The contracts to study Iranian oilfields were signed with firms including Austria’s OMV, France’s Total , Germany’s Wintershall, Indonesia’s Pertamina, Russia’s Lukoil and Zarubezhneft, he said.

Source: Arab News