Foreign firms start talks with Iran for working in oil market
By Aynur Karimova
Foreign companies have started preliminary evaluations for presence in the Iranian oil and gas fields within the framework of the newly introduced oil contracts, Oil Minister Bijan Namdar Zanganeh said.
He noted that the draft version of the new contracts called Iran Petroleum Contract (IPC) should be finalized before considering any tender, IRNA news agency reported on April 26.
"While the IPC is not finalized yet, we cannot say when and with which company the contracts will be signed," Zanganeh added.
The IPC is the country's former buyback contracts with some revises. It was introduced a few months ago as a measure to make more out of the lush Iranian oil business.
The model of the contract emphasizes foreign investment that would bring technology to Iran. It also requires foreign investors to work with at least one Iranian partner.
Within the next few weeks, Iran's Oil Ministry will start reviewing the qualification of the foreign companies, which are in talks with Iran on oil and gas cooperation.
Meanwhile, Mehr news agency reported that Iran has held talks with several Canadian and the U.S. oil companies on various contracts for selling petrochemicals, purchase of technology and investment in oil and gas industry.
Over the past several months and after the removal of international sanctions on Iran, a group of the U.S. and Canadian companies have been in talks with Iranian officials to seal deals on launching upstream and midstream oil, gas and petrochemical projects.
The North American companies also eye selling goods and equipment, providing Iran with drilling services and purchasing petrochemical products from Iran.
Companies such as Halliburton Corporation and the General Motors Corporation are likely to reach deals with Iran on drilling. However Marzieh Shahdaei, the Director for projects at National Petrochemical Company of Iran, dismissed the reports suggesting that the U.S. companies have plans to invest directly in Iran's petrochemical industry.
An official document of Iran's Oil Ministry, obtained by Trend suggests that the country needs to attract $501 billion by 2025 for developing its upstream, midstream and downstream oil and gas projects.
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