Iran to unveil new oil contract model on November 28

Iran’s new model of oil contracts, known as Iran Petroleum Contract (IPC), will be formally unveiled on November 28. 

During a two-day conference in Tehran, some 50 upstream oil, gas, and petrochemical projects will be introduced to Iranian and foreign companies, IRNA news agency reported on November 27.

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 maximise the utilization of capital and technology of companies. The contracts will be long term and repayments will be conducted over longer periods, which will incentivise foreign investors.

Head of Iran’s Contracts Restructuring Committee Mehdi Hosseini said representatives from 33 countries will participate in the conference.

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