Iran planning to scrap buyback contracts to attract oil investment

29 October 2013

Tehran planning to reveal details of new contracting strategy in March 2014, according to Financial Times report

Iran is aiming to attract international companies back to its energy sector by offering more lucrative contracts to develop its oil and gas fields, according to a report by the Financial Times.

Mehdi Hosseini, an adviser to Iran’s oil minister, told the newspaper that Iran would scrap its current system of “buyback” contracts and introduce new deals that allow companies to book reserves.

Iran is planning to reveal details in London in March 2014 of plans it hopes will attract $100bn-worth of investment over the next three years to develop the Islamic Republic’s ailing oil and gas industry.

The strategy comes amid a cooling of tensions between Tehran and Washington, which are engaging in the most active negotiations on Iran’s nuclear programme for several years.

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.