Minister asks for parliament-government cooperation to restructure oil contracts

TEHRAN (FNA)- Iran’s Oil Minister Bijan Namdar Zanganeh called for cooperation between the parliament and government in a bid to reform the structure of oil contracts for more attractiveness.

“Improving the structure of oil contracts aims to attract investment and investors. To that effect, cooperation between the government, parliament and Petroleum Ministry for reforming the structure of contracts is a must,” Zanganeh told the Parliament’s Energy Commission.

Shamsollah Bahmaei, spokesman of the Parliament’s Energy Commission, told Shana that Zanganeh has submitted his plans for oil, gas, refining, distribution and petrochemical sectors to the parliamentary committee.

“The oil minister has said that we will need the assistance of the country’s diplomatic apparatus for selling oil,” he said.

“Sustained and secure oil sales were among the priorities of Zanganeh,” the MP said. “The oil minister said in the meeting that oil sales are intertwined with the pillars of oil market and therefore we have to develop new plans for selling oil within the framework of principles accepted by the Islamic establishment.”

Zanganeh reaffirmed his intention for raising the country’s oil output to above four million barrels a day, according to Bahmaei.

The minister also said the development of South Pars gas field phases nearing completion will be prioritized.

Zanganeh did not give an upbeat assessment of the development of Persian Gulf Star Refinery and said completion of the refinery will be a priority in the refining sector.

“The oil minister said we will reach full self-sufficiency in gasoline [production] after the operation of Persian Gulf Star refinery,” Bahmaei stated, adding that Zanganeh has promised to support the private sector to develop petrochemical projects.

Zanganeh has already ordered a review of buy-back oil contracts in a bid to make them more attractive for potential foreign investors.

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

By Fars News Agency


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