IPC Gets the Nod

IPC Gets the NodIPC Gets the Nod

Iran’s new model of oil and gas contracts was approved by the Resistance Economy Headquarters on Tuesday after some amendments, a top government economic advisory body, Reuters reported, citing Fars and Tasnim news agencies as saying on Tuesday.  The Iran Petroleum Contract (IPC) is a cornerstone of the country’s plan to raise crude production through foreign investment. The launch of contracts has been postponed several times as opponents have resisted any deal that could end the buyback system, dating back more than 20 years, under which foreign firms are banned from booking reserves or taking equity stakes in local companies.

Iran’s Supreme Leader Ayatollah Ali Khamenei said this month that no new oil and gas contracts will be awarded without necessary reforms. The approval of the contracts by the Resistance Economy Headquarters comes as Iranian officials say the first deals under the IPC framework will be signed in three months. The body is chaired by the First Vice President Es’haq Jahangiri and several cabinet members, including Oil Minister Bijan Namdar Zanganeh, attend its meetings. The final draft for the contracts must still be approved by the government.