The new model of Iran’s oil and gas contracts, titled Iran Petroleum Contract (IPC), obtained final approval from the government’s Regulations Adjustment Panel, said the Iranian petroleum minister.
Speaking to Shana, Bijan Zanganeh said that there is no problem for executing the new contracts.
Last November, Iran hosted a conference to unveil IPC models and to brief foreign companies on the details of the new contracts. A large number of the representatives of major energy firms attended the forum and showed great interest in IPC.
IPC is expected to replace buy-back contracts. Under a buy-back deal, the host government agrees to pay the contractor a fixed price for the entire volume of hydrocarbons it produces.
However, the IPC requires the National Iranian Oil Company to set up joint ventures with international companies in oil and gas production. In addition, the foreign firms will receive a share of the output.
Tehran IPC conference is to be followed by another in London on February 22-24.