Realism Crucial in Signing Oil Deals

Realism Crucial in Signing Oil DealsRealism Crucial in Signing Oil Deals

Iran must refrain from idealism in negotiations over new oil contracts, said a senior legal consultant at the National Iranian Oil Company.

"While negotiating oil contracts in the post-sanctions era, it is imperative to take up a pragmatic approach towards the current economic and political state of the country and refrain from idealism," Sohrab Rabiei was quoted as saying by ILNA.

Rabiei was speaking during a technical panel named "Ideal State of Iran's Oil and Gas Industries: Contracting Opportunities and Challenges", held at the Second National Convention on Energy Law in Tehran.

Iran's revised oil contract, known as Iran Petroleum Contract or IPC, is slated for unveiling in November.

IPC is aimed at accelerating the development of oil and gas fields, making up for underdevelopment in joint fields over the past few years and adopting new, advanced technologies in the energy sector.

"We need to accept that Iran's return to the oil market has many opponents and some states believe that the revisit could intimidate their economic or political interests," he said.

That is precisely why, Rabiei believes, Iran must act meticulously, professionally and efficiently in the manner in which it plans to reenter the international oil market, and make the most of specialized entities in line with up-to-the-minute changes in the economic and political arena.

The consultant also emphasized that legal supervision should persist all the way through the entire contracting stages, including designing, negotiation, implementation and dispute resolution process.

"Right at this moment, giant companies active in the oil industry are awaiting the introduction of Iran's new oil contracts for scrutiny and will agree to get involved in our lucrative oil projects only if there is a true economic justification," he said.

Iran is scheduled to unveil the new oil contract in a conference in Tehran next month before a full-fledged unveiling in London on February 22-24.

Officials say Tehran has sweetened the terms of the new contract to attract billions of dollars in foreign direct investment for up to 50 oil exploration and production projects.