Conference to Unveil Iran’s New Oil Contract Model Kicks Off

The long-awaited conference aimed to unveil Iran’s new model of oil contracts, known as Iran Petroleum Contract (IPC), opened today in Tehran. 

It is estimated that 153 companies from 45 countries to attend the conference.

Shell, Total, Eni, Lukoil, Sinopec, DNO, Woodside Petroleum, Petronas, GPSC, and   a host of other world giants are slated to be present in the conference.

During a two-day conference, some 50 upstream oil, gas, and petrochemical projects will be introduced to Iranian and foreign companies.

The Iranian Oil Ministry has embarked on introducing the new model of contract with the aim of expediting development of oil and gas fields, attracting more investment, and acquiring new technologies.

The IPC is expected to replace buy-back contracts. It highlights the need to maximize the utilization of capital and technology of companies. The contracts will be long term and repayments will be conducted over longer periods, which will incentives foreign investors.

Iran says it needs to invest $185 billion in its oil and gas projects over the next five years.

The IPC was first supposed to be unveiled in December last year in a conference in London. 

In September, Iranian Oil Minister Bijan Namdar Zanganeh said Iran will hold a conference to unveil its new oil contracts in Tehran instead of London.