Refiners have begun cutting back…
Oil prices gained slightly as…
On Sunday, Iran appointed Ali Kardor as the managing director of its National Iranian Oil Company.
The move comes at a time when Iran is boosting its crude output and is looking for over $100 billion to revive its energy industry. No reason was given why Kardor replaced Roknoddin Javadi in the position.
In his new post, Kardor, who will also sit on the board, will be tasked with soliciting bids and awarding contracts to entities who can come up with the capital and technology to assist Iran in the expansion of its crude production and the construction of refineries. The Iranian government believes the first deals will be signed soon.
Iran has been upping both production and export of oil since the start of the year when economic sanctions were lifted. According to Oil Minister Bijan Namdar Zanganeh, Iran has doubled its exports since January, and is looking for partners in some 70 oil and gas fields.
As to the contracts needed to bring in foreign investors, Zanganeh said that although the contracts had been under review for some two weeks by the Iranian Cabinet, oil contracts take time and negotiation. According to Zanganeh, the first of the contacts should be signed within two to three months. Now that the economic sanctions have been lifted following a pledge by Iran to pursue peaceful purposes in its nuclear program, the country is hoping for at least $50 billion in foreign investments per year from oil majors.
Related: Oil Is Set To Rally Beyond $50
The Oil Ministry has been working on a new model contract, and according to Zanganeh, most changes reflect legal issues. In November, Iranian officials identified the oil fields that would be offered to the foreign operators under the new agreements. The final versions of those contracts have been delayed since 2014 while the country asked for feedback from foreign companies and regulators in the Iranian government.
By Lincoln Brown for Oilprice.com
More Top Reads From Oilprice.com:
Lincoln Brown is the former News and Program Director for KVEL radio in Vernal, Utah. He hosted “The Lincoln Brown Show” and was penned a…