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Iran will not hold tenders among foreign companies on oil and gas fields in 2016, LUKOIL Vice-President Leonid Fedun said in an interview with TASS Russian news agency.

“I don’t think Iran will carry out any tenders in the near-term,” he said.

Fedun believes that the Iranian government should decide on the form of the contract, which it wants to offer to the investor.

“They don’t know themselves when they will decide on the form of the contract, as it is a political issue,” said Fedun. “It doesn’t depend on the Iranian oil ministry, and the decision should be made by the political leadership with the participation of the clergy.”

However, Fedun said that Iran won’t be able to enter the global oil market and “flood everyone with oil.”

The country will be recovering from sanctions for a very long time, and without massive foreign investment, technologies, it won’t be able to significantly increase its market share, he said.
Fedun went on to add that the LUKOIL is not ready to participate in projects in Iran at the current price of oil.

“Given such oil prices, no major oil company will go even for the most attractive oil reserves, so we are studying, researching,” he said.

In addition, Fedun said that the company has a fear of re-imposing sanctions on Iran.

“Such a fear exists,” he said. “There is such a mechanism, but the Iranian leadership is very determined to come back to the global oil market, so it will scrupulously implement all those parameters of the agreement concluded on the Iranian nuclear program.”

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