News ID: 175565
Published: 0721 GMT January 11, 2017

Iran to launch first new-style oil tender in weeks

Iran to launch first new-style oil tender in weeks

A senior Iranian oil official announced that the development of a major oilfield in the southwestern province of Khuzestan will be put to tender for the first time based on a new model of oil contracts, known as Iran Petroleum Contract (IPC), within the next four weeks.

The project to develop South Azadegan oilfield, would be Iran's first international tender, said Deputy Head of National Iranian Oil Company (NIOC) Gholamreza Manouchehri, according to Tasnim News Agency.

Fortunately, the documents of the tender have almost been finalized, he said, adding according to the schedule, the development project of the South Azadegan oilfield will be put out to tender by the next four weeks.

Manouchehri further said Japan's Inpex Corporation, which has signed a memorandum of understanding (MoU) with the NIOC to conduct studies on the development of the South Azadegan oilfield, has submitted its report on the first phase of the studies.

He added that the company is well qualified to participate in the upcoming tenders, including the tender for the South Azadegan oilfield.

The new oil and investment contract for international firms, known as the IPC, will 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 worked on the oil contract model for 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 oil and gas fields in the wake of a lasting nuclear deal between Tehran and world powers.

Foreign energy giants have shown growing interest in cooperation with Iran since a lasting nuclear deal between Iran and the P5+1 (Russia, China, the US, Britain, France and Germany) went into effect on January 16, 2016.

The deal, also known as the Joint Comprehensive Plan of Action (JCPOA), terminated all nuclear-related sanctions on Iran and prepared the ground for a much-anticipated economic boom.

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