TEHRAN Oct. 19 (Shana) � Iran is likely to see major economic development under the new oil contracts it is to present in November to global oil companies, a senior Iranian petroleum official said.
"We are hopeful that by introduction of the new petroleum contract models within the next month, the ground will be set for taking rapid economic steps in the country once the sanctions are lifted," said Rokneddin Javadi, managing-director of National Iranian Oil Company (NIOC).
Addressing a petroleum conference in Tehran on Monday, he called call on all domestic and international firms active in petroleum industry to attend the November conference in Tehran during which Iran will introduce its new petroleum contract models.

The new petroleum contract model, also known as Iran Petroleum Contract (IPC), is hoped to sweeten oil deals for companies operating, or willing to operate, oil and gas projects in Iran.
Iran aims at 5mb/d of crude oil output and 1.4bcm of natural gas output through IPC, said Javadi.

IPC is replacing buyback deals.
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.

By SHANA