Iran to introduce 40 exploration blocks

TEHRAN Sep. 3 (Shana)–National Iranian Oil Company (NIOC) is making preparations for the introduction of 40 new exploration blocks to be put on tender, NIOC’s exploration director said.

 Hormuz Qalavand did not provide any details about the new exploration blocks.

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.



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