Oil Ministry’s JCPOA Committee to Facilitate FDI

Oil Ministry’s JCPOA Committee to Facilitate FDIOil Ministry’s JCPOA Committee to Facilitate FDI

A special committee established in the Oil Ministry will monitor the Joint Comprehensive Plan of Action (the official title of Iran's July 14 nuclear deal with major powers) over the implementation of oil-related investment issues, first deputy oil minister for international and commercial affairs said on Wednesday   

"The committee will be the ultimate reference to remove JCPOA-related misinterpretations and would help overcome obstacles in the way of investors willing to finance oil and gas projects in Iran," Masoud Hashemian also said at the 17th Investment Opportunities Fair, Shana reported.

Pointing to the favorable economic and political climate in post-sanctions era, Hashemian added that the government's main policy is to attract foreign investment to the country.

"During the last two years, not only financial infrastructures but also domestic and foreign political situations have undergone dramatic changes," he said.

Iran will lift the curtain on the framework of its multibillion-dollar oil contracts in a conference on November 28-29 in Tehran and "the oil ministry's JCPOA committee can play a key role in guaranteeing that contracts do not conflict with Iran's national interests".

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, and revised some of the drawbacks of previous oil contracts, such as the terms of the buyback contracts.

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.

"Foreign investors are acutely aware of Iran's economic policies. Moreover, our country's security as well as its untapped oil, gas and petrochemical potentials seems to be very appealing to them," he said.

Underscoring the importance of forming the JCPOA committee in the Oil Ministry, the official said, "The probable ambiguities and misinterpretations about JCPOA will be clarified with the help of the committee."

According to Hashemian, the committee dealing with the July 14 Iran nuclear deal and addressing issues arising from its implementation is a plus point for foreign investors in Iran's petrochemical industry.

The official believes that being aware of JCPOA's terms is of great importance for all Iranian private and state companies, which intend to attract investment, especially in the petrochemical sector.

Referring to the JCPOA appendixes dealing with the sanctions removal and the US and EU commitments toward Iran, he said, "Wrong and unrealistic interpretations will create formidable obstacles for companies eager to invest in Iran's development projects."     

Iran and the major powers announced on July 14 that they reached a landmark understanding on the outline of a final nuclear deal aiming to resolve the 12-year dispute over Tehran's civilian nuclear program.