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Iranian govt. approves new model for oil contracts

Iran’s First VP Jahangiri said new oil contracts went through 150 amendments and were notified to the Ministry of Oil.

Iranian govt. approves new model for oil contracts
(Monday, August 8, 2016) 11:15

Iran’s First Vice-President Es'haq Jahangiri made the announcement on the sidelines of the Sunday Cabinet session saying “Iran’s new model for oil contracts called Iran Petroleum Contracts (IPC) was signed on Saturday and declared on Sunday.”

Underscoring that the new contracts are not supposed to appear in the Parliament as a bill, the official said “on the basis of the ‘oil law’ passed by the Parliament, general condition of oil contracts are to be defined by the government and adopted by Oil Ministry.”

He further noted that the government has approved of a number of upstream regulations as well as a series of general conditions under which the Ministry will ink agreements with foreign parties.

Jahangiri reiterated that the Oil Ministry of Iran is obliged to comply with the terms of the government’s legislation while sealing oil deals.

He maintained that distinct policies have been formulated for new oilfields and joint fields; “also, separate conditions have been set for recovery from existing wells in order to guide the Ministry on how to seal contracts in various circumstances.”

He outlined the approval of new contracts as a distinguished achievement by the Iranian government adding “a great deal of time and effort have been put on IPCs and, at the order of the Leader, all views of critics were taken into consideration during meetings of the Resistance Economy Command Headquarters.”

Jahangiri recalled that 150 amendments were introduced to the contracts and the new format comprises 15 Articles.

“A number of foreign countries which hold joint fields with Iran were eager to prevent escalation of Iran’s share in these fields while new contracts to boost production will soon be inked,” stressed the first VP.

Es'haq Jahangiri said the country’s economy is on the right track and policies of Resistance Economy are being implemented; “unlike some people’s view, the Iranian economy is a large one and Resistance Economy intends to put it into motion by focusing on production, imports and exports which in turn requires billions of dollars of resources and investment in various fields including oil, gas and petrochemicals,” he emphasized.

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