New oil contracts with Iran will be for the next 20 years

New oil contracts with Iran will be for the next 20 years


Contracts for the development of hydrocarbon resources of Iran contain 8 sections and annexes, which contain information about exploration work, said the adviser to the Committee the resumption of the Iranian oil contracts.

TEHERAN, 28 Nov. The term of new contracts, Iranian and foreign investors for the development of hydrocarbon reserves in the country for 20 years with possible prolongation for another 5 years, said the Advisor to the Committee of the resumption of Iranian oil contracts, Mahmoud Reza Farazmand.

“Terms of proposed contracts reach 20 years with the possibility of extension for another 5 years”, — said the Agency Sputnik Farazmand.

According to him, every contract contains eight sections. The first section of the agreement is introductory and explains how work will be done. The second section is associated with the life of the contract. The third section contains the rights and obligations of the national Iranian oil company from the point of view of providing assistance to the company-investor. The fourth section contains the rights and obligations of the investor, the fifth programme of work, while other sections related to billing issues and interests.

He also said that “there are annexes to the contracts, which contain information about geological exploration works, field works and coordination”.

Farazmand said that the Fund will meet the investor company.

“There is also the point at which emphasis was placed in all contracts the number of jobs to foreigners and jobs for Iranians in every contract. It is a mandatory requirement for all oil projects,” said Firouzmand.