• 4 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 7 minutes Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 13 minutes NordStream2
  • 2 hours California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 1 day Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 2 days "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 22 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 13 hours U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 18 hours Nord Stream - US/German consultations
  • 3 days An Indian Opinion on What is Going on in China
  • 3 days Can Technology Keep Coal Plants Alive and Well?
  • 2 hours Forecasts for Natural Gas
  • 11 hours Australia sues Neoen for lack of power from its Tesla battery
  • 3 days Storage of gas cylinders
  • 4 days Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 4 days Succession Planning in Human Resources for Vaccinated Individuals in the Oil & Gas Industry

Iran Approves New Oil and Gas Contracts

Iranian officials on Tuesday approved the new Iran Petroleum Contract (IPC) deal after numerous delays between hardliners and more moderate elements of the government.

As reported by the Iranian state media and mentioned by Reuters, the chief government economic advisory body (the Resistance Economy Headquarters) gave the go-ahead for the IPC including several amendments.

One of the main sticking points of the new gas and oil contracts corresponded to the buyback system where foreign firms are barred from booking reserves or taking equity stakes in local companies.

President Hassan Rouhani resisted calls to end the buyback system that has been in place for more than twenty years. Supreme Leader Ayatollah Ali Khamenei, who has opposed Rouhani on issues such as a historic nuclear power deal, claimed earlier this month that no new gas and oil contracts would be added unless necessary reforms were incorporated.

The Resistance Economy Headquarters was formed last year in order to implement Khamenei's economic views. The government must approve the final draft of the IPC package though the first set of contracts is expected to be signed this September.

The new contracts are crucial for an Iranian energy industry seeking to expand following the removal of international sanctions last January. Oil accounts for less than 15 percent of government revenue and around 1.4 million barrels of oil per day (bpd) were exported in 2015. Yet Iran is currently exporting 2.6 million bpd, and Deputy Petroleum Minister for International Affairs and Trading Amir Hossein Zamaninia recently estimated that US$40 billion to US$50 billion of investments would be made in the Iranian oil industry this year.

By Erwin Cifuentes for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | 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