TEHRAN Oct 28 (Shana)–The managing-director of National Iranian Oil Company (NIOC) has named a new chief at the head of the state-run company’s legal directorate.
Rokneddin Javadi on Monday appointed Ali-Akbar Mahrokhzadeh to replace Mahmoud-Reza Firouzmand.
Javadi said the NIOC’s Legal Directorate is expected to make sure that Iran’s interests are guaranteed in contracts signed with foreign companies.
He stressed the need for the revision of oil contracts, saying the current model of contracts has created some problems with regards to the finance of the projects.
Iran is 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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