Iran Trilateral Energy Deal to Boost Foreign Participation. Market Access

The August oil agreement between Iran. Russia and Turkey is aimed at fostering participation in financing and developing Iranian oil and gas projects and providing Iran with access to the international markets. an oil official said.
The trilateral oil deal was inked in August 2017 in the Russian capital in the presence of the senior officials of the three countries. Abdolreza Hosseinnejad told the Islamic Republic News Agency (IRNA) during an exclusive interview on Saturday.
The parties involved in the trilateral deal included Iran`s Ghadir Investment Company. Russia`s Zarubezhneft and Turkey`s Unit International. Hosseinnejad said.
According to the oil deal. the three investors have agreed to administer together all the technical and economic activities related to execution of oil and gas projects. he said.
They are also expected to cooperate on creating leading economic-technical teams. he added.
Based on Iran`s new oil deals. the Iranian companies should seek partnership with foreign companies. pioneering in technical know-how. Hosseinnejad said.
He went on to say that the parties of the deal have also agreed that any foreign company which is willing to be engaged in the Iranian projects. should be accompanied by an exploration and production (E&amp.P) company from Iran.
`Such interaction with the international companies will lead to success and growth of domestic companies.` the official said.
A member of Society of Iranian Petroleum Industry Equipment Manufacturers (SIPIEM). Neda Mousavizadehgan said at a press briefing in May that the ground has been prepared after the July 2015 nuclear deal for development of cooperation between Iran and the reputable international companies.
According to SHANA. the new oil deals based on Iran Petroleum Contract (IPC) is expected to replace buy-back contracts.
Under a buy-back deal. the host government agrees to pay the contractor a fixed price for the entire volume of hydrocarbons it produces.
However. the IPC requires the National Iranian Oil Company (NIOC) to set up joint ventures with international companies in oil and gas production. In addition. the foreign firms will receive a share of the output.

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