Iran announces oil contract overhaul

Iran announced an overhaul of its oil and gas contracts, introducing long-term stakes and profits for foreign investors. The government expects $30 billion in bids for around 50 oil and gas projects that went on offer on Saturday.

The Iranians are looking for capital, equipment and expertise to revive ageing oilfields and bring new projects on stream. Output has fallen by 1 million barrels per day to 2.7 million since sanctions were imposed in 2012.

Iran’s Oil Minister Bijan Zanganeh said foreign investors would partner with local companies and commit to technology transfer under the new model, which also prevents them from withdrawing if sanctions are reimposed.

Some members of the Iranian parliament was skeptical of the new contract model, saying it did not favor local firms enough or impose the necessary tariffs or Customs.

Interested companies include BP, Total, Statoil, Sinopec, Shell and Eni, all of whom were represented in Tehran when the announcement was made.

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