Iran seems to have held no aces in its new oil contract, officially known as Iran Petroleum Contract or IPC, compared to that of Iraq, chairman of Energy Commission at Iran's Chamber of Commerce said on Saturday.
"Although Tehran has sweetened the terms of the new contract, it does not seem to be alluring enough to attract billions of dollars in foreign direct investment, especially when it is compared with Iraq's new oil contracts," Ali Shams Ardekani was quoted as saying by Shana.
According to the Energy Commission chairman, the most distinct advantage of IPC is the low cost of oil extraction.
Underscoring the limited appeal of IPC, Ardekani added that parliamentarians should propose a measure to add more incentives.
Referring to Iran's national interests, he said, "Iran's new oil contracts must have more marginal profit for investors compared to that of Iraq; otherwise, we will be the loser. Attracting oil giants to invest in energy projects is much harder than in the past due to the drastic decline in oil prices."
Ardekani said, "Under the present circumstances, efforts to attract investment would be great. Moreover, I wish Iran had concluded such contracts when oil prices were high."
The official believes that the previous administration wasted numerous unique oil investment opportunities, which explains why unveiling the new contracts must not be postponed any further, as it may lead to more losses.
Ardekani stressed that technical know-how transfer to Iran must have a definite term in new contracts regardless of the financial burden, as the failure to attract investment will cost more in future.
"It is regrettable that we are lagging behind Qatar in terms of extraction from the South Pars oilfield in the Persian Gulf, with the tiny Arab neighbor reportedly drawing 550,000 barrels per day. Iran's extraction from the joint field amounts to nothing," he said.
Criticizing the opponents of IPC, Ardekani said, "The previous administration could have invested up to $800 billion in oil, gas and petrochemical projects, but those who were in charge seem to have wasted the money."
Iran will lift the curtain on the framework of its multibillion-dollar oil contracts initially in a conference in Tehran on November 28-20 and later in a seminar in the British capital London on February 22-24.
The conference, which is expected to bring together major international oil and gas companies in Tehran, will be an opportunity to show Iran's energy market potential rather than a platform to finalize deals.
In addition to demonstrating the Oil Ministry's priorities in investment deals, the two-day event will highlight the performance and activities of the oil industry and provide details to Iranian and foreign investors.
Of those 50 projects, around 20 will include discovery and exploration, while 30 projects are designed to boost extraction from oil and gas fields by implementing enhanced oil recovery techniques.
Iranian oil officials say Tehran has made the terms of the new contracts more lucrative to attract billions of dollars in foreign direct investment. It has also revised some of the drawbacks of previous oil deals, such as the terms of the buyback contracts.
