Iran Signed First IPC Deal Worth $2.5b

Iran Signed First IPC Deal Worth $2.5b

The National Iranian Oil Company (NIOC) signed a $2.5b contract with Persia Oil & Gas Industry Development Company (POGIDC), a domestic firm in Iran, to develop the second phase of Yaran field and improve oil recovery for Koupal field , reported Reuters.

The deal is the first to comply with Iran’s long-awaited new Iran Petroleum Contract (IPC) framework. Although the contract is with an Iranian firm, the OPEC producer hopes to attract foreign energy investors to boost output after years of international sanctions, according to Daily Mail Online.

Iran’s Oil Minister, Bijan Zanganeh, said the country is expected to sign more agreements under IPC by March 2017. Iran is speculated to sign the second IPC deal early October. Zanganeh added that Iran needs more than $100b investments to develop the country’s oil sector and is welcoming cooperation with all companies.

Egypt Oil&Gas previously reported that Iran was to offer international oil companies a new template for oil contracts in an attempt to attract foreign funds to help rebuild its energy industry. The new contract model would clearly state that domestic reserves belong to the state and major decisions by the managerial committee of any joint venture would be approved by NIOC.

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