Iran’s new oil contract model not finalized yet: NIOC official

Tasnim– An Iranian oil official said on Tuesday that the final draft of a new format of the country’s oil sector contracts is not ready yet.

“The new oil contracts model, which was formerly known as Iran Petroleum Contract (IPC), is now known as updated buy-back,” the deputy head of the National Iranian Oil Company (NIOC), Gholamreza Manouchehri, told Tasnim on Tuesday.

An appendix related to technology transfer and other appendices of the new model have not yet been included in the final draft, he further said, adding that the draft is now under final review.

Referring to a recent major agreement signed between the NIOC and the French energy giant Total over the development of one of Iran’s biggest gas fields in south, Manouchehri said Total inked a Heads of Agreement (HOA)  with Iran not a contract.

He added that a contract will be signed after the draft and its appendices are finalized.

The agreement involves a consortium led by Total, which includes the China National Petroleum Corporation (CNPC) and Iran’s Petropars.

The consortium would reportedly make a total investment of $4.8 billion in Phase 11 of the huge South Pars gas field.