TEHRAN Oct 7 (Shana)--Iran plans to unveil the new type of its oil contracts in London in February next year in an attempt to attract foreign investors provided that the Western governments lift their sanctions against Tehran.
�In case the sanctions are annulled, a new model of oil contracts will be unveiled in London� from February 23 to February 25, Mehdi Hosseini, head of Petroleum Ministry Oil Contracts Revision Committee, said.

The three-day event in London will be attended by Rokneddin Javadi, managing-director of National Iranian Oil Company, Ali Majedi, newly-appointed ambassador to Germany, and Hosseini and Ali Kardor, director of investment at National Iranian Oil Company.

Iran is also poised to introduce a new model of oil contracts, known as Iran Petroleum Contract (IPC) to replace �buy-back� contracts which, he added, are no longer attractive to foreign companies.

Under a buyback deal, the host government agrees to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.

But under the IPC, NIOC will set up joint ventures for crude oil and gas production with international companies which will be paid with a share of the output.

Foreign companies are expected to rush back to Iran as hopes soar for relief in sanctions imposed on the Islamic Republic over its nuclear program.

By SHANA

 

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