Iran: New NIOC Chief Tasked With Securing Foreign Investment

Iran appointed Ali Kardor as Managing Director of the National Iranian Oil Company (NIOC) on 12 June, replacing Roknaldin Javadi, who had held the post since 2013.

Iran has surpassed expectations for the speed with which it has increased crude output since international sanctions were eased in January, but is struggling to put in place a framework that will entice IOCs back into its upstream sector. Without international firms’ technical expertise and financing, Iran will struggle to push beyond pre-sanctions output of 3.58mn b/d in 2011.

Prior to resigning, Mr Javadi was coming under intense pressure from conservative factions in Iran’s political system who see efforts to attract IOCs as ‘giving away the family silver’. Specifically, attempts to introduce a new contractual model for IOCs – the Iran Petroleum Contract (IPC) – are proving highly contentious due to concerns that they are too favorable to IOCs. (CONTINUED - 1010 WORDS)