TEHRAN (SHANA)--Vice-President for Legal Affairs Elham Aminzadeh said on Saturday that Iran must take into account its maximum benefits in the new type of oil contracts it is adopting.
Unfortunately, the models presented so far for oil contracts have not guaranteed maximum profits for the country,� she told a seminar in Tehran on oil contracts.
She said Iran�s century-old petroleum industry has experienced concessions, production sharing agreements and service contracts.

She said that concessions, which were in effect in Iran for nearly half a century, provide the contractor with special advantages.

Aminzadeh said Iran banned concessions and production sharing contracts following the 1979 Islamic Revolution because of the losses they inflicted on Iran.
With regards to buy-back contracts, she said that his model does not give the foreign investor any ownership on oil resources.

�In this model, the necessary flexibilities have not been envisaged for the project. The basis of this type of contracts is transfer of technology and the government runs no risk,� she said.

Aminzadeh said the buy-backs are no longer attractive because they do not envision the necessary mechanisms for maintaining the production level.

�The expectations of domestic and foreign investors and contractors must be studied and shared fields must be more attractive than independent fields,� she said.
She called for the removal of bureaucratic obstacles to cooperation with Iranian and foreign investors.

�The flexibility of new contracts in the face of different international conditions is of great significance so that the execution of contracts could be managed under any circumstances,� said Aminzadeh.

By SHANA

 

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