Iran inks oil contract with Chinese companies
By Fatma Babayeva
Iran expands cooperation with China in a bid to revive it oil sector.
The Islamic Republic signed an Iranian Petroleum Contract (IPC) with Chinese companies on the development of two large Iranian oil fields, Iranian Minister of Petroleum Bijan Zangeneh told Shana agency.
Chinese companies will take part in the development of the second phase of North Azadegan and Yadavaran oil fields, the official noted. The minister refused to mention the names of the Chinese companies.
Earlier, Abdolreza Hoseininejad, CEO of Oil Engineering and Development Company stated that Iran intends to negotiate with the Chinese Sinopec on the development of the second phase of the Yadavaran field.
Chinese companies can also join development projects over new oilfields in Iran whether independently or as joint ventures with European and Asian companies under the new oil contract model, Zangeneh added.
The minister also noted that Chinese firms have indicated readiness to join Iran's mini-LNG and LNG projects, adding that they will offer their proposals to Iran in this regard.
China was the largest importer of Iranian oil in April by acquiring 800,000 barrels per day.
Iranian Petroleum Ministry earlier announced that the country needs investments worth around $400-$500 billion in order to develop its oil industry.
Currently, Iran’s Ministry of Petroleum develops plans to attract foreign investment in the sector by introducing a new model of oil contracts - IPC. IPC contracts are designed specifically by Iran to order to increase the attractiveness of the oil projects for the foreign investors.
IPC offers contractors the various stages of exploration, development and production as a complex package.
Foreign oil companies hold intensive negotiations to return to the Iranian market at the present.
Iran already concluded contracts with several European oil companies , and the implementation of those contracts is expected to take place in near future.
The country strives to bring its oil exports to the pre-sanctions level (around 4 million barrels per day) by the end of this summer in the longest.
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Fatma Babayeva is AzerNews’ staff journalist, follow her on Twitter: @Fatma_Babayeva
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