Call for Rewriting Iran Oil Contracts

New oil and gas projects cannot be developed under sanctions unless new contracts are designed, a senior energy analyst and former head of Iran's Petroleum Contracts Committee said.
"Under the current conditions attracting foreign investment for upstream development projects is almost impossible. We need to focus on domestic companies and pave the way for their maximum participation in development contracts," Seyyed Mehdi Hosseini was quoted as saying by ILNA.
New contracts should be designed in a way that minimizes investor risk and maximizes their profit. If this does not happen, no one will invest in risk-prone projects and energy development projects will suffer, Hosseini warned.
So long as sanctions exist, neither the new model of oil contracts -- Iran Petroleum Contract (IPC) -- nor the old buyback agreement would be attractive. “So, there is a need for a special model of contracts to encourage Iranian and foreign firms that have no links to the US financial system,” he said.