Iran Unveils Upgraded Model for Oil Contracts

Iran has unveiled a new model of oil contracts aimed at attracting foreign investment once sanctions are lifted under a landmark nuclear deal reached earlier this year.
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Iran Unveils Upgraded Model for Oil Contracts
Iran's Oil Minister Bijan Zanganeh (C), Managing Director of National Iranian Oil Company, Roknoddin Javadi (R), head of parliament's energy committee Ali Marvi (L), and participants listen to Iran's national anthem during opening ceremony of Iran Petroleum Contracts Conference in Tehran, Iran, Saturday, Nov. 28, 2015. Iran has unveiled a new model of oil contracts aimed at attracting foreign investment once sanctions are lifted under a landmark nuclear deal reached earlier this year. (AP Photo/Vahid Salemi)
The Associated Press
11/28/2015
Updated:
11/30/2015

TEHRAN, Iran—Iran has unveiled a new model of oil contracts aimed at attracting foreign investment once sanctions are lifted under a landmark nuclear deal reached earlier this year.

The new Iran Petroleum Contract (IPC) unveiled Saturday replaces the previous buy-back model. Iran has sweetened the terms, hoping to bring in $30 billion in new investment. The new contracts last 15-20 years and allow for the full recovery of costs.

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Some 50 upstream oil, gas and petrochemical projects are being introduced during a two-day conference in Tehran that began Saturday.

OPEC member Iran currently exports 1.1 million barrels of crude oil per day and hopes to get back to its pre-sanctions level of 2.2 million, last reached in 2012. Iran’s total production now stands at 3.1 million barrels per day.