Iran Finalizing Oil Contract Law, Drawing Indian Investments

Iran Finalizing Oil Contract Law, Drawing Indian Investments

Reuters reported that Iran expects to finalise the wording for a new model for international oil contracts in the next three weeks, based on an announcement by Iran’s Oil Minister Bijan Zanganeh.

“Iran has put together a new model for oil contacts that allows access to regional and international markets and paves the way for long-term strategic cooperation with major companies,” he was quoted as saying by the Shana news agency.

“We are hopeful that this new model is approved by the government within this (Iranian calendar) month”, he added.

In other news, sources revealed that the Indian Oil Corporation is planning to build a $3b petrochemicals plant in Iran, said Gulf News.

The 1 million-ton-a-year project will go ahead provided Iran can guarantee the supply of cheap natural gas as feedstock.

A natural gas-fed petrochemicals plant will allow Indian Oil to diversify from its existing projects that use oil products from its own refineries, the sources explained.

India has been eager to fill the gap left by international oil companies thanks to the sanctions slapped on Iran over its nuclear programme, and is eager for mutual investments from Iran into its own energy sector.

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