A top Iranian oil official said Tuesday that the country is going to put development of big oil fields out to tender using a new model of contracts known as Iran Petroleum Contract (IPC) for the first time in the coming weeks.
Speaking at a press conference in Tehran, Ali Kardor, CEO of the National Iranian Oil Company (NIOC), said the country will probably hold the bidding event in the next Iranian month of Mehr (September 22 – October 21).
He explained that foreign companies will tender for development of the major oil fields under the new model of contracts.
South Azadegan will likely be the first major oil field to be put out to tender using IPC, he added.
According to Kardor, Iranian companies will be also given the chance to make bids for running small-scale and medium oil fields.
The new oil and investment contract for international firms is planned to replace Iran’s buyback oil deals. Under a buyback deal, the host government agrees to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.
Iran has been working on the oil contract model for the past two years. The country hopes to draw as much as $50 billion a year from major oil companies such as Italy’s Eni SpA and France’s Total to develop its oil and gas fields.