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Iran’s new oil investment contract to be ready by July

by ChemOrbis Editorial Team - content@chemorbis.com
  • 06/05/2016 (14:48)
The new Iran Petroleum Contract (IPC) for international oil companies will be effective as of July, according to media reports. Deputy Oil Minister Rokneddin Javadi said that they are planning to announce oil tenders in July.

The new IPC ends a 20 year-old buy-back system which prevents foreign companies from booking reserves or taking equity stakes in Iranian companies. Analysts commented that Iran is trying to offer more advantageous opportunities to attract foreign investors in order to make up some of the time lost during the sanctions period.

Most sanctions against Iran were lifted in January following Tehran’s compliance with an agreement which required it to curb its nuclear program signed between Iran and six major powers; including the United States, France, Britain, China, Russia and Germany. Since the removal of sanctions, Iran has been gradually increasing its output to regain lost market share.

Iranian officials expect Iran to return to its pre-sanctions output level by June 20. Javadi stated that Iran can join OPEC output freeze discussions after increasing its production to pre-sanction levels, signaling that Iran may be more willing to cooperate with other OPEC members on a proposed output freeze at the cartel’s next meeting, which is planned to take place on June 2 in Vienna.
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