DUBAI Oct 3 The National Iranian Oil Company
(NIOC) will sign the first of its new oil and gas contracts
(IPCs) with a domestic firm on Tuesday, its managing director
The signing of the first IPC tomorrow will intensify
anticipation among international oil majors for long-awaited
further contracts in the new format.
The Iran Petroleum Contract (IPC) is a cornerstone of the
country's plan to raise crude production to the pre-sanctions
level of four million barrels per day (bpd).
The launch of the IPC has been postponed several times as
hardline rivals of pragmatist President Hassan Rouhani resisted
any deal that could end the so-called buy-back system, under
which foreign firms were banned from owning stakes in Iranian
"Tomorrow NIOC will sign a contract with Setad Ejraye Farman
Emam under the IPC to develop the second phase of Yaran field,
and EOR (enhanced oil recovery) and IOR (improved oil recovery)
contracts for Koupal oil field," managing director of NIOC, Ali
Kardor was quoted as saying by Fars news agency.
Iran's Tasnim news agency said the value of the new contracts
is $2.5 billion.
Setad Ejraiye Farmane Hazrate Emam, or Setad, is one of the
most powerful organizations in Iran that works directly under
the command of Islamic Republics highest authority, Supreme
Leader Ayatollah Ali Khamenei.
Khamenei said in July that no new oil and gas contract for
international companies would be awarded without necessary
Kardor said both the president and the oil minister have
made it clear that no IPC would be signed unless the Supreme
Leader is happy with the new form of contracts.
Oil majors have said they would only go back to Iran if it
made major changes to the buy-back contracts of the 1990s, which
companies such as France's Total or Italy's Eni
said made them no money or even incurred losses.
(Reporting by Bozorgmehr Sharafedin; Editing by Alexander Smith
and William Hardy)