He said that Iran Petroleum Contract (IPC) has removed all problems which have existed in the framework of oil contracts over the past 20 years.
“Iran enjoys lots of attractions for investment in the oil sector, and therefore with the resolution of the contracts’ problem, the grounds will be prepared for the renewed presence of big oil companies in the country,” said Hosseini.Iran’s Oil Ministry on Sunday unveiled the draft model of its new oil contracts aimed at drawing more foreign companies to develop Iranian hydrocarbon reservoirs.
The IPC is replacing “buy-back” contracts which are no longer attractive to foreign companies.
Under a buyback deal, the host government agrees to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.
But 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.
Iran’s Oil Ministry plans to hold a conference in London in July to introduce the new contract terms to international companies.
World oil giants have shown interest in returning to Iran following the easing of sanctions against Iran in light of the implementation of Tehran’s nuclear deal with world powers.