• 6 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 33 mins WTI @ $75.75, headed for $64 - 67
  • 2 hours Trump vs. MbS
  • 22 mins Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 4 hours The Dirt on Clean Electric Cars
  • 2 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 11 hours Uber IPO Proposals Value Company at $120 Billion
  • 18 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 16 mins EU to Splash Billions on Battery Factories
  • 15 hours COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 5 hours Coal remains a major source of power in Europe.
  • 2 hours Poland signs 20-year deal on U.S. LNG supplies
  • 12 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 14 hours Nopec Sherman act legislation
Alt Text

Chile Sees Unrest In Its Gold And Copper Sectors

Major issues are emerging in…

Alt Text

How Lower Demand For Steel Boosts Platinum Prices

Depressed steel markets have led…

Dave Forest

Dave Forest

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

More Info

Trending Discussions

International E&Ps; May Finally Own Oil Here

News last week suggests a new frontier in oil exploration may be on the verge of opening up. Creating some big opportunities for the world's E&P firms.

That's Iran. Where the country's Petroleum Ministry announced that it is working on a revamp of its production sharing contracts for oil and gas development.

Foreign companies have been working in Iran for years. But under a slightly different arrangement than in most parts of the world. Operators like Total have produced oil under "buyback contracts". Where the Iranian government simply pays them a fee on the volumes of crude pumped from government-owned fields.

This meant the operating firm didn't actually own the reserves. Just a cash flow stream in exchange for ensuring the smooth functioning of production systems.

But it now appears the Iranian government will move to a more traditional regime. Where foreign joint venture partners with the government will actually own a share of the production from the fields they're involved in.

That's makes working here a lot of more attractive for big players. Who generally want to book as many in-ground barrels as possible in reserves. In order to show investors their inventories aren't depleting.

With these changes coming, Iran could become a sought-after exploration destination for the first time in decades.

A draft model of the new operating contracts has already been presented by the Iranian ministry. We get more details on the exact terms over the coming months.

Of course, it will be critical to see what parameters are used for royalties, production shares and cost recoveries. But indications are the nation is earnestly seeking new partners to help boost production.

If the terms do come back fair, this could be the next rush for the oil industry. Iran still has a lot of potential--especially if international technology is imported in a significant way.

Here's to being an owner,

By Dave Forest


x


Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News