Terms of Iran's New Oil Contract Model Flexible: Official


TEHRAN (Tasnim) – A senior Iranian oil official said on Saturday that the country’s new model contract for oil and natural gas projects will have flexible terms and conditions.

‎"What we are offering is a very flexible model of contracts, it is integrated exploration, development, production all those terms‎," Mehdi Hosseini, head of Iran's oil and gas contracts restructuring committee, told Reuters.

‎"The fee per barrel that is paid as profit to the company‎ is flexible based on the risk which is considered ...‎ Higher risk, higher reward, lower risk, lower reward," he added.

"Anything will be adjusted, depending on the different stages of the operations."

‎Iran will offer some 52 oil and gas projects - both brown and green fields - including around 20 for exploration, Hosseini further said.

The contracts last for 20 years and "in some special cases it could also be extended to 25 years‎," he said, not including a period for exploration deals.

‎"We are offering some projects in the Caspian sea and also very low-risk areas in the Persian Gulf‎," he said.

Iran will announce a new development contract model at conferences in Tehran on November 28-29 ‎and in London in February.