The Iranian government expects IPC to create more flexibility in the country’s oil and gas sector in terms of crude oil price fluctuations.
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Zamaninia described Iran as the best destination for foreign investments in oil and gas industries considering all the problems in the region vis-à-vis all the positive elements about Iran. Some 335 companies, including 152 from 45 foreign states, are taking part in the IPC conference, including Royal Dutch Shell, Total and Lukoil and Gazprom.
About 50 oil and gas projects are expected to be unveiled during the Tehran conference, taking place on Saturday and Sunday.
“Now, it is an appropriate time for the oppressive sanctions against Iran to be lifted and once again it is proved that sanctions against oil flow harm both the producer and consumer and that oil must not be threatened and sanctioned with a political attitude”, Petroleum Minister Bijan Zangeneh told the opening Saturday.
Iran reached a landmark deal with the six world powers in July 2015, easing anti-Iran sanctions in exchange for Tehran’s agreement to reduce its uranium stockpiles and significantly cut centrifuges over the next decade and a half.
However, as Iranian fighters participated in a new Russian-led offensive against Syrian rebels, Iran’s leaders might have a reason to offer more details of their country’s involvement, said Ali Alfoneh, an Iran expert at the Washington-based Foundation for Defence of Democracies.
Iran has big plans to increase oil production in the coming years, from about three million barrels a day now to five million by the end of the decade.
Zanganeh said consultations with worldwide companies led to the new contracts, which would initially be four years in length, extendible for a further two years.
“We are interested to come back to Iran when the sanctions are lifted and if the contracts are interesting”, Stephane Michel, Total’s head of exploration and production in the Middle East said at the conference. They must also partner with local companies in joint ventures, and transfer technology.
Iran could sign its 1st development contract in March or April, Kardor said.
NIOC will announce other bid parameters in about 5 months when it will hold an energy auction, she said. That includes projects at 29 new and now producing Oilfields and 23 Gas developments.
Foreign businesses that have invested in Iranian oil field exploration and development often could not stay around long enough to recover their outlays.
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Iran’s output is down one million barrels per day at 2.7 million bpd since the start of 2012 when sanctions were imposed.
