TEHRAN, Feb 27 (Bernama) — Iran plans to attract US$100 billion foreign investments in the crude oil sector over the next four years, Xinhua news agency reported citing local media.
Iran has revamped its rules governing oil contracts to facilitate foreign investment in the country, said Oil Ministry’s Oil Contracts Revision Committee head Mehdi Hosseini.
Iran Petroleum Contract (IPC), which envisages new contract models offered by the Islamic republic, has overcome all difficulties affecting oil deals over the past 20 years, Hosseini said.
“By resolving old contract problems, the ground is prepared for the renewed presence of big oil companies in the country,” Hosseini was quoted as saying by the Iran Daily.
“The IPC is replacing ‘buy-back’ contracts that are no longer attractive to foreign companies,” he said.
Under the IPC, the National Iranian Oil Company will set up joint ventures for crude oil and gas production with foreign companies.
Overseas companies cut back their presence in Iran as Western countries imposed sanctions on its oil and gas industries over the last few years, resulting in a significant decrease in the country’s oil and gas exports.
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