February 8, 2014
As sanctions continue the interesting news is to determine what will overcome the current road blocks. This nation is set on accomplishing new opportunities to draw in companies and investors. The news that “Iran drawing up new contracts to attract oil majors” is drawing attraction.
It was reported that Iran’s oil ministry, Mehdi Hosseini said “Sunday it is preparing a new type of contract that would be more attractive to major oil companies in case of the lifting of international sanctions. The new contracts would replace buyback types under which contractors funded projects and got paid in the form of an allocated production share — a system applied for more than 20 years in Iran.”
International oil and gas companies have withdrawn from Iran since the strengthening of US and European sanctions in recent years over Tehran’s controversial nuclear drive. A committee formed at the oil ministry to iron out the new type of contracts is expected to finish its work by May or June, ministry official Mehdi Hosseini who heads the team, told reporters,” reported Channel News Asia.
The sanctions have implored a need to capture “$150 billion over the next five years for exploration and production operations, said Hosseini.