Iran’s Minister of Petroleum Bijan Namdar Zanganeh (file photo)

New oil contract model requires partnership of domestic firms in oil projects: Min.

Shana — Iranian Minister of Petroleum Bijan Zangeneh says the newly-devised model of oil contracts requires presence and partnership of Iranian companies in oil and gas projects besides foreign developers.

Speaking in an in-depth interview with Iran Daily, Zangeneh said real private sector companies have no claims that they can develop multi billion-dollar projects domestically and without any foreign support.

Those who keep claiming they can conduct projects of such magnitudes domestically show how incapable they are, he said.

“The risk of such projects is very huge and companies must be very adept with developing the projects,” he added.

The official said the newly-devised model of oil contracts, also known as Iran Petroleum Contract (IPC), allows maximum partnership of Iranian companies in developing oil and gas projects.

“Under these contracts, foreign companies are required to join the Iranian companies whose qualities we have ascertained,” he added.

This will allow Iranians to gradually acquire the knowhow of developing projects in various sectors including engineering, reservoir management and upstream projects, the official added.