Azernews.Az

By Sara Rajabova

Several top European countries energy corporations have voiced interest in new format oil contracts with Iran, according to an Iranian official.

Mehdi Hosseini, the head of an expert team under Iran’s petroleum ministry to revise the current format of Iran's oil contracts, said some Russian and Chinese companies are interested in Iran's new oil deals which will be unveiled in a conference in London in September, IRNA reported.

The Iranian market is expected to become much more attractive to foreign investors should international sanctions imposed on Iran be lifted.

Hosseini added that international oil major companies are waiting for the results of Iran's nuclear talks with the P5+1 and the removal of sanctions against Iran.

However, he did not provide the names of the companies.

Hosseini said Iran will consider no priority to foreign companies that approach it to take up investment projects in the oil sector, but emphasized that the companies need to have the required technology and expertise as well as the adequate ability to provide the capital needed to implement the projects.

He also went on to note that the companies also need to be ready to transfer their technical oil expertise to Iranian companies.

Mohammad Lahouti, vice president of Iran Export Confederation and member of the Tehran Chamber of Commerce told Trend that after the signing of a final agreement with the West and the lifting of sanctions, Iranian market would be attractive for foreign investors.

He said foreign investors will seek to use the rich opportunities of the Iranian market, particularly in the oil and gas fields, petrochemical and automotive industries.

Lahouti also considered that the main area of investment will become joint ventures.

The Iranian media reported that the new format of Iran’s oil contracts - named as Iran Petroleum Contract– will be a modification of the traditional buy-back risk service contracts and has been specifically designed to increase the attractiveness of Iranian oil projects for foreign investors.

The IPC offers different stages of exploration, development and production to contractors as an integrated package. Also, Iran will set up joint ventures with contractors to extract reserves at the fields. The contractors will be accordingly reimbursed through a share of production from the fields.

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Sara Rajabova is AzerNews’ staff journalist, follow her on Twitter: @SaraRajabova

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