Iran’s energy sector has been taking hits on multiple fronts since Western-led sanctions were implemented in early 2012 over its disputed nuclear program. Existing oil and gas projects have suffered repeated delays, while newer foreign-led ventures ran into difficulties and had to be cancelled.

But the implementation of a new generation of contracts – resembling the traditional production-sharing agreements (PSAs) – should “make the contracts more attractive to foreign companies,” the minister said, relative to the buy-back regime that Iran had previously favored. These would allow oil companies to get back what they invested in the project more quickly than in the case of buy-backs. (CONTINUED - 816 WORDS)