Iran is likely to attract 100 billion dollars in investment over the coming four years when its new model of contracts has taken effect, a senior official said.
Mehdi Hosseini, who heads the Oil Ministry’s committee for revising oil contracts, said that the new model of contracts removes all problems which existed in the previous models.
“Iran has many attractions for investment in the oil sector. With the resolution of the problem of contracts, the grounds will be prepared anew for the presence of big oil companies in Iran,” Hosseini told Shana.
He said that Iran will be flooded by demands for investment once sanctions are lifted.
The new model, IPC, is replacing “buy-back” contracts which are no longer attractive to foreign companies.
Under a buyback deal, the host government agrees to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.
But under the IPC, National Iranian Oil Company (NIOC) will set up joint ventures for crude oil and gas production with international companies which will be paid with a share of the output.