Iran will introduce its new oil contract model in Tehran on November, instead of previously announcing to unveil it in London on December, an Iranian official said Saturday.
'The first phase of contracts will be unveiled in November in Tehran, and a follow-up conference will be held in one or two months in London,' Managing Director of the National Iranian Oil Company Roknoddin was quoted saying by Iranian petro energy information network Shana.
Iran's Oil Minister Bijan Zangeneh announced August 31 that the new model known as the Iran Petroleum Contract (IPC) is expected to be approved by the government in September to be finalized.
Previously, Tehran was planning to introduce the IPC in London on December in an international conference to draw foreign investment into its oil and gas sector in the post-sanctions era.
With the IPC model, international oil companies (IOCs) can establish joint ventures with the National Iranian Oil Company to participate in almost every aspect of energy deals and projects, from management and exploration to development and production.
Meanwhile, Tehran hopes IOCs to provide the necessary means to reverse decline rates in Iran's mature fields and help Iran transfer know-how and technology from IOCs.
'More than cash or using the technology, we would like to have their advanced technology to be transferred to domestic companies,' Zangeneh said early September.
'New contracts that will be signed in the IPC framework will be more attractive for foreign companies,' he added, according to Shana.
The IPC model will have a life of between 20 to 25 years - much longer than the obsolete buyback models, which only gave IOCs around half of that time and allowed them to be involved only in the exploration and development phases of energy projects.
By Ovunc Kutlu
Anadolu Agency
ovunc.kutlu@aa.com.tr