Iran oil contract model still under review

10 April 2017

Oil minister says national security body is still assessing law, pointing to delays in oil field tenders

The Iran Petroleum Contract (IPC) model is still being reviewed by the Supreme National Security Council, according to the country’s oil minister, pointing to further delays in tendering oil field projects.

Students’ news agency ISNA quoted Petroleum Minister Bijan Zanganeh as saying the contracts, drawn up to attract overseas companies to Iran’s oil and gas sector, are still being assessed by Iran’s highest security body.

State-owned National Iranian Oil Company (NIOC) in January prequalified 29 international companies to bid on upcoming project but the date of the first tenders has been delayed since February.

Tehran is keen to get Western and other international oil companies to participate in the Iranian energy sector in order to update infrastructure, develop new fields and expand capacity.

Last year, oil majors Total and CNPC signed a $4.8bn preliminary agreement to develop phase 11 of the South Pars gas field but few binding long-term deals have been signed since sanctions were lifted in January 2016.

President Hassan Rouhani faces opposition to the IPC from hard-line conservatives in Iran’s political establishment, while fighting a campaign for a second term in office.

It is unclear whether the IPC will be approved before the election on 19 May. Hard-line cleric Ebrahim Raisi announced on 9 April he would run against Rouhani, challenging the president’s economic record.

The election of a conservative as president in May could impact the terms of the IPC, which some conservatives believes give too much control over Iran’s oil assets to overseas companies.

Emerging markets iran report front cover march 2017

MEED’s latest research report, Emerging Markets: Iran 2017 is available now. Click here to find out more

There is no doubting the huge potential for business in Iran. But, one year on from the lifting of international nuclear sanctions on the Islamic Republic, it is still a difficult place for international companies to do business.

Emerging Markets: Iran 2017 provides a comprehensive snapshot of all the latest developments in Iran.

The 250-page report looks at Tehran’s drive to attract investment in its oil, gas, industrial and civil infrsatructure sectors.

Emerging Markets: Iran 2017

  •     Gain an immediate insight on the emerging Iran projects market
  •     Set business strategies for entering and growing in the Iran market
  •     Discover the priority areas for investment and proposed projects
  •     Identify opportunity and mitigate risk
  •     Save time and investment on research and analysis

Emerging Markets: Iran 2017 is available now. Click here to find out more

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.