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The ultimate version of a new format of Iran’s oil contracts. known as Iran Petroleum Contract (IPC). has been prepared in compliance with the cabinet’s measure and will be used for putting development of a major oil field out to tender in spring.
The final version complies with the conditions set by President Hassan Rouhani’s cabinet for new contracts with the foreign contractors.
Iran’s Azadegan oil field will be reportedly the first field to be put out to tender using IPC in spring 2017.
The first contract under IPC will include development of both South and North Azadegan fields as an integrated project.
It is believed that a foreign oil giant will be assigned the task of managing the project. which requires around $1 billion in financing. while an Iranian company would be picked as a partner in the consortium.
The new oil and investment contract for international firms is planned to replace Iran’s buyback oil deals.
Iran has been working on the oil contract model for the past two years. The country hopes to draw as much as $50 billion a year from major oil companies such as Italy’s Eni SpA and France’s Total to develop its oil and gas fields.
French oil and gas company Total held talks with Iranian officials about several projects in the country in 2016. notably a 10 million tonnes per year liquefied natural gas project (LNG). the company in a filing on Friday.
Sources told Reuters in February that Total was in talks to buy a multi-billion dollar stake in Iran`s partly-built LNG export facility.
Total said in the filing to the U.S. Securities and Exchange Commission that it held technical meetings in 2016 with National Iranian Oil Company officials and carried out technical review of the South Azadegan oil field and the LNG production facility at Tombak port on Iran`s Persian Gulf coast.
