No permission needed for Iran return to oil market

TEHRAN June 07(Shana)–Iran’s minister of petroleum said the country does not need to take permission from any country or group to return to oil market after sanctions have been lifted.

“For raising production and returning to market we need no permission and we do not transfer our quota to others,” Bijan Zangeneh said.

He said Iran handed a letter to OPEC member states to voice its readiness for return to world market immediately after the lifting of sanctions.

“In the letter delivered to OPEC, we noted that we will return to the oil market after the lifting of the sanctions and that you should take into consideration this issue in your production,” Zangeneh said. “That is our right and we do not wait for anyone’s permission for this purpose.”

“For increasing production to the level we used to supply and returning to the market we do not need permission from anyone,” he added.

Zangeneh said: “In my view, OPEC will soon adapt itself with this issue and there would be space for us.”

He also touched on his recent meetings with CEOs of oil giants on the sidelines of the 167th ministerial meeting of the Organization of the Petroleum Exporting Countries, saying: “Most companies were willing to return to Iran to operate oil and gas projects in the country.”

He said he also discussed the conditions and terms included in Iran Petroleum Contract (IPC), the new model Iran is to present soon to foreign companies.
IPC is replacing buyback deals which 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, National Iranian Oil Company (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.