Iran’s oil contract model attractive

Iran’s new oil contract model is so attractive that is expected to persuade foreign oil companies to line for investment in the country, Mehdi Hosaini who is in charge of revamping oil contracts said. Speaking at a press conference here today, Hosaini said Iran’s new oil contracts will be more attractive than those formulated by the neighboring country Iraq, Shana reported. He said that the committee tasked with revising oil contracts has reviewed 30 oil contract models so far including Iraq’s model as a service contract model which has succeeded to strike a good balance between production and earning purposes. “In spite of these advantages, Iran’s new model is more attractive than Iraqi ones due to removing their weaknesses’, he told journalists. Elsewhere in his remarks he said Iran’s upstream sector requires as much as 150 billion dollars in investment in next five years, bulk of it is expected to come from foreign investments. He referred to unattractiveness of the Oil Ministry’s current oil contract models as a stumbling block in the way of attracting foreign investment adding the committee he heads has spent more than 3.000 hours to study contracts while at the same time has examined more than 70 Phd theses from within and outside the country on the subject. He said a 2 day seminar in Tehran on 22 and 23 February will discuss the prototype of contracts which will pave the way for their finalization in April. On the sidelines of the seminar which will discuss 12 clauses of the new contract model, 12 round tables will be held to listen to contending views on the terms of contracts.