• 35 mins Syrian Rebels Relinquish Control Of Major Gas Field
  • 2 hours Schlumberger Warns Of Moderating Investment In North America
  • 3 hours Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 4 hours Energy Regulators Look To Guard Grid From Cyberattacks
  • 5 hours Mexico Says OPEC Has Not Approached It For Deal Extension
  • 7 hours New Video Game Targets Oil Infrastructure
  • 8 hours Shell Restarts Bonny Light Exports
  • 9 hours Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 16 hours Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 21 hours British Utility Companies Brace For Major Reforms
  • 1 day Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 1 day Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 1 day Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 1 day OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 1 day London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 1 day Rosneft Signs $400M Deal With Kurdistan
  • 1 day Kinder Morgan Warns About Trans Mountain Delays
  • 2 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 2 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 2 days Russia, Saudis Team Up To Boost Fracking Tech
  • 2 days Conflicting News Spurs Doubt On Aramco IPO
  • 2 days Exxon Starts Production At New Refinery In Texas
  • 2 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 3 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 3 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 3 days China To Take 5% Of Rosneft’s Output In New Deal
  • 3 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 3 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 3 days VW Fails To Secure Critical Commodity For EVs
  • 3 days Enbridge Pipeline Expansion Finally Approved
  • 3 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 3 days OPEC Oil Deal Compliance Falls To 86%
  • 4 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 4 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 4 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 4 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 4 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 4 days Aramco Says No Plans To Shelve IPO
  • 7 days Trump Passes Iran Nuclear Deal Back to Congress
  • 7 days Texas Shutters More Coal-Fired Plants
Is OPEC Considering Deeper Output Cuts?

Is OPEC Considering Deeper Output Cuts?

You could argue OPEC and…

How To Play The Next Wireless Revolution

How To Play The Next Wireless Revolution

The global communications boom has…

Iran Reveals Details on New Contracts With IOC’s

Iran Reveals Details on New Contracts With IOC’s

Iran announced new details on how it will design contracts with international companies seeking to develop Iranian oil and gas reserves, according to Bloomberg. At a conference in Tehran, Iranian officials stated that they will provide incentives for companies developing riskier fields in an effort to lift production. Iran appears to be planning for the eventual removal of international sanctions targeting its nuclear program.

The new contracts offer a variety of incentives that Iran feels will give it a competitive position over other countries, including its neighbor Iraq. These incentives include paying fees to companies based on a sliding scale, with riskier reserves fetching a higher price. Companies would also receive incentives for boosting production beyond their contractual targets, and for extending the life of declining fields. Iran will also offer exploration rights in neighboring oil basins if companies drill wells that come up dry.

Related Article: Iran Talks Potential Nuclear-Oil Swap with Russia

“We’ve analyzed all the contracts in the market right now, all available beneficial models, and this is what we’ve come up with,” Mehdi Hosseini, a government energy adviser said at the conference, according to Bloomberg. “This is a good model, with flexibility.”

Iran is offering a production sharing agreement that would include a joint venture with the National Iranian Oil Company. Iran will maintain state control over oil and gas reserves, rather than allowing companies to take ownership. Oil companies covet the ability to own reserves, as it is an essential element of financial reporting that determines their valuation. Iran’s new plan will offer international oil companies the ability to report produced oil that they receive as pay.

Many western companies were not present. Instead, Gazprom, China National Petroleum Corpration, and Petronas were in attendance along with several others. Iran still needs to negotiate with western powers over its nuclear program and it has agreed to hold talks in the coming weeks.

By Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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