A senior Iranian oil official announced that the development of a big oilfield in the Southwestern Province of Khuzestan will be put to tender for the first time under a new model of oil contracts, known as Iran Petroleum Contract (IPC), within up to four coming weeks.
The project to develop South Azadegan oilfield, would be Iran’s first international tender, the Deputy Head of the National Iranian Oil Company (NIOC), Gholamreza Manouchehri, said on Monday.
Fortunately, the documents of the tender have been almost finalized, he said, adding according to the schedule, the development project of the South Azadegan oilfield will be put out to tender by the next four weeks.
Manouchehri also said Japan’s Inpex Corporation, which has signed a Memorandum of Understanding (MoU) with the NIOC to carry out studies on the development of the South Azadegan oilfield, has submitted its first phase of the studies.
He added that the company is well qualified to participate in the upcoming tenders, including the tender for the South Azadegan oilfield.
The new oil and investment contract for international firms, known as the IPC, will replace Iran’s buyback oil deals. Under a buyback deal, the host government agrees to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.
Iran worked on the oil contract model for two years. The country hopes to draw as much as $50 billion a year from major oil companies such as Italy’s Eni SpA and France’s Total to develop its oil and gas fields in the wake of a lasting nuclear deal between Tehran and the 5+1 group.
There has been growing enthusiasm for ties and cooperation with Iran since a lasting nuclear deal between Iran and the 5+1 group (Russia, China, the US, Britain, France and Germany) took effect on January 16, 2016.
The deal, also known as the Joint Comprehensive Plan of Action (JCPOA), terminated all nuclear-related sanctions on Iran and prepared the ground for a much-anticipated economic boom.