IPC secures Iran’s sovereignty over oil, gas resources: APCE CEO

TEHRAN, Feb. 28 (Shana) – Chairman of the Board of Directors of the Association of Petroleum Industry Engineering and Construction Companies (APEC) said the Iran Petroleum Contract (IPC) new models stress ownership of the National Iranian Oil Company over the country’s oil and gas resources.

Behzad Hazrati made the comments during a speech at a three-day workshop on using joint operating agreements (JPA) in the petroleum industry here on Sunday.

“IPC also reiterates EOR and IOR demanding foreign contractors to be committed to production by preserving the resources using modern and advanced technologies,” he added.

Under the new models, said APEC CEO, all the risks related to exploration operation will be shouldered by the foreign party and environmental and social issues should be duly considered.

Themed “Joint Operating Agreements: International Practices and Challenges”, the workshop is attended by law and contract managers of the companies in the field of oil and gas.

The course is run by Eduardo Pereira, attorney and international energy consultant, and adjunct professor of energy law.

In oil and gas projects, the unique combination of expense and risk means that participant often share the burden by forming some form of joint venture. The JOA is the constitution form of the joint venture given the huge size of the investment.

The energy law event in Tehran is sponsored by the Association of Petroleum Industry Engineering and Construction Companies, with The Hague-based Creative Business Consultancy (CBS) Energy as organizer.

By SHANA