Iran’s Vice President, Eshaq Jahangiri, said that he signed an authorization for the Ministry of Petroleum to use the new format of the Iran Petroleum Contract (IPC) for oil and gas deals, Gulf News reported.

Under the new format, the National Iranian Oil Company will set up joint ventures for crude oil and gas production with international companies which will be paid with a share of the output. Different stages of exploration, development and production will be offered to contractors as an integrated package, with the emphasis laid on enhanced and improved recovery, according to Press TV

IPC is replacing buyback deals, in which the host government agrees to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.

Iran is reported to start using the new IPC format before the end of the current fiscal year which start on March 20.