Iran: First IPC Contract Signed, But Foreign Firms Remain Cautious

Iran has signed the first contract under the framework of the new Iran Petroleum Contract (IPC). But the non-binding deal is with a well-connected local firm, whilst further tweaks are still being made to the IPC framework.

A heads of agreement (HOA) was signed between the National Iranian Oil Company (NIOC) and the Persia Oil and Gas Industry Development Company on 4 October. The $2.2bn deal is for the development of four fields in southwest Iran – Kupal, Marun and North and South Yaran.

Under the terms of the 20-year agreement, Persia Oil and Gas is to boost output from the fields by at least 75,000 b/d, from 185,000 b/d to above 260,000 b/d according to NIOC Managing Director Ali Kardor. The petroleum ministry’s news agency Shana reported that Mr Kardor says that it is easier to work with domestic firms rather than foreign ones, and that contracts are thus signed more quickly with them. (CONTINUED - 988 WORDS)

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table NIOC Post-Sanctions Upstream Mous With Foreign Firms