Iran eyes $185 billion in oil and gas investments
VIENNA, July 23, 2015 – Iran has laid out plans calling for $185 billion in investment in around 50 oil and gas projects by 2020. The announcement, which follows a nuclear agreement with six world powers that will see long-running economic sanctions on the oil- and gas-rich country lifted, was made by Iran’s deputy petroleum minister at a conference in Vienna on Thursday.
A new contract model, known as the integrated petroleum contract, will be used for the projects. This model “addresses some of the deficiencies of the old buyback contract and it further aligns the short- and long-term interests of parties involved,” the deputy petroleum minister told the conference.
Iran holds the world’s fourth-largest proved oil reserves, with 158 billion barrels, and the world’s second-largest proved natural gas reserves, with 34 tcm (1,201 tcf), according to the US Energy Information Administration.
The proposals are part of an overall strategy to improve Iran’s industries, particularly oil and gas, metals and automobile, as the country looks to open bilateral trade networks with Europe. At the same conference, Iran’s deputy minister of the economy affairs and finance said that in recent weeks the government had approved $2 billion in projects to be carried out by European companies.