Iran Working on Tender Process for 40 New Oil, Gas Blocks

National Iranian Oil Company (NIOC) is working on introducing tender process for 40 new exploration blocks, NIOC’s exploration director said.

Hormuz Qalavand did not provide any details about the new exploration blocks, according to oil ministry owned Shana News Agency.

According to the news agency, Iran is also poised to introduce a new model of oil contracts, known as Iran Petroleum Contract (IPC) to replace “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, 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, Shana said.