Iran plans to launch the long-awaited new upstream oil and gas contracts, aka Iran Petroleum Contract, at a three-day international conference in Tehran scheduled for January 30.
Platts also reported on Tuesday, citing people in charge of the conference, that international oil companies hoping to invest in Iran's upstream oil and gas sector have been waiting for the launch of the contract since January but have seen several delays as the parliament demanded revisions.
Iranian officials say IPC is an upgrade to the buyback contract model that was used in Iran's oil industry over the past two decades. IPC offers more attractive terms and conditions, including higher rewards for risky projects as well as 20-year terms of cooperation that can be extended.
State-owned National Iranian Oil Company said it will reveal details of a few fields up for auction at a separate event to be held from September 22 to October 21 this year, including tenders for work by Iran's domestic companies.
The new event in January is where Iran could unveil prized assets that it hopes will draw international attention, along with investment and new technology to add some 2 million barrels per day of new crude production capacity.
Iran is currently producing around 3.85 million barrels per day and hopes to reach 4 million bpd by the end of the year.
Separately, Iran could receive a major boost to oil production as it prepares to export a new crude oil grade, known as West Karun. NIOC is close to completing infrastructure work on facilities to handle the heavy oil.
NIOC's director for international affairs, Mohsen Qamsari, told Reuters at a conference in Singapore that Iran would be ready to separate the crude grade as soon as a pipeline and terminal were completed.
It is expected to compete with Iraq's Basra Heavy crude that has an average quality of 23-24 API degrees, which proved increasingly popular among Asian and US refiners since its launch in June last year.
