• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Does Toyota Know Something That We Don’t?
  • 5 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 2 days World could get rid of Putin and Russia but nobody is bold enough
  • 1 day America should go after China but it should be done in a wise way.
  • 5 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 4 days China is using Chinese Names of Cities on their Border with Russia.
  • 5 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 4 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 10 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine
  • 5 days Putin and Xi Bet on the Global South
  • 5 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 6 days United States LNG Exports Reach Third Place
  • 6 days Biden's $2 trillion Plan for Insfrastructure and Jobs

Breaking News:

U.S. Crude Oil, Gasoline Inventories Boom

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Iran’s Top Security Officials Could Kill Its Oil Future

A potential oil and gas opportunity emerged last week in Romania. When that country’s government liberalized pricing and exports for natural gas— which could see producers here getting better rates and making higher profits.

But elsewhere, one of the world’s most highly-anticipated new energy opportunities appears to have hit a snag.

Oil and gas in Iran.

Iran’s oil minister Bijan Zanganeh said yesterday that Iran’s new petroleum contracts for international operators are up in the air again. Noting that approval of the new model for taxes and profits on foreign-controlled projects is now stuck in review with top security officials.

Zanganeh told local press that Iran’s Supreme National Security Council is looking at the proposed new contracts. With that body representing the highest security agency in the country.

The fact that such a high-level group is examining the petroleum contracts is a new and unexpected development. Coming after the contracts have faced substantial opposition from conservative factions inside and outside Iran’s government.

This review by the Security Council could be the latest move by hardliners to derail the new contract model. Which has been criticized for giving away too much ownership to foreign operators.

Major E&Ps have said they need concessions on ownership and profits in order to return to Iran. With the new model representing a substantial improvement on Iran’s former fiscal regime — which operated under a “risk service” arrangement, where international firms could not own equity stakes in projects or book reserves. Related: OPEC Can’t Stop The Beat: U.S. Adds 10 Oil Rigs

The move to a more attractive fiscal regime has been pushed by Iran’s moderate government. With officials already having prequalified 29 firms for bidding on Iranian projects as part of a planned license round this year.

If the current security review trips things up, interest from those companies will dry up fast. Watch for the outcome from this critical standoff over the next few weeks — although no timeline has officially been given for a decision from the Council.

Here’s to locking it down.

ADVERTISEMENT

Dave Forest

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News