Oil Ministry Promoting Transparency in Contracts

Oil Ministry Promoting Transparency in Contracts
Oil Ministry Promoting Transparency in Contracts

The Oil Minister Bijan Namdar Zanganeh is promoting domestic oil production as well as increased transparency in contracts, said deputy oil minister for engineering affairs.

According to a new directive, the terms of domestic and international contracts will be standardized, and claims from Iranian companies will be assessed and paid based on hard currency rates. "Assessment of claims will be based on hard currency rates, but the payment will be in rials," Seyed-Emad Hosseini was quoted by IRNA as saying.

The directive has been issued in line with the 'resistance economy' policies, which aim to enhance domestic production, produce wealth, increase transparency, rectify transactions, curb corruption, and create a competitive and level playing field for those participating in contracts and tenders.

The directive stipulates that the oil ministry's subsidiaries must provide evidence they only work with producers on the approved list of suppliers prepared by the engineering affairs' office.

Unifying Prices

In all transactions for the purchase of goods, the basis for assessment and point of comparison between the price of domestically-produced goods and foreign goods has to be the balanced price between the two. The point of comparison is from the customs office for foreign products and the factory for domestic goods.

On that basis, the balanced prices of foreign goods will be determined plus transportation and insurance costs, and taking into consideration the government charges (including customs tariffs and commercial profits).

Fair Terms of Contracts

The directive also stipulates that in all contracts relating to the purchase of goods and services in which there is competition between domestic producers and foreign suppliers, all terms must be equal for domestic and international participants.

Consequently, in all domestic and international purchase contracts the provisions, amount, and type of guarantees required to participate in tenders, good performance, deposits and other legal guarantees required for domestic and international contracts will be unified.

All transactions concerning purchase of domestic and foreign goods will be monitored by competent third parties.