• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 3 hours Science: Only correct if it fits the popular narrative
  • 3 hours Crazy Stories From Round The World
  • 11 hours What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 16 hours EU has already lost the Trump vs. EU Trade War
  • 9 hours China's Renewables Boom Hits the Wall
  • 1 day ''Err ... but Trump ...?'' *sniff
  • 40 mins Do The World's Energy Policies Make Sense?
  • 10 hours Forget out-of-date 'dirty oil' smear, Alberta moving to be world's cleanest oil industry
  • 1 day Pioneer's Sheffield in Doghouse. Oil upset his bragging about Shale hurt prices. Now on campaign to lower expectations, prop up price.
  • 3 hours Impeachment Nonsense
  • 1 day Tesla Launches Faster Third Generation Supercharger
  • 15 hours Water, Trump, and Israel’s National Security
  • 2 days Passerby doused with flammable liquid and set on fire by peaceful protesters

Breaking News:

Russia Plans To Boost Crude Oil Exports

Iran Admits: Tanking Oil Revenue Cripples Country

Iran Admits: Tanking Oil Revenue Cripples Country

Iran's President, Hassan Rouhani, has…

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
Download on the App Store Get it on Google Play