Iran approves new O&G deals

Iran approves new O&G deals

Iran officials have approved the new Iran Petroleum Contract (IPC) deal after amendments by the Resistance Economy Headquarters and a government advisory board on Tuesday.

The IPC is a foundation of the country’s plan to increase crude production through foreign investment.

The launch of contracts has been delayed several times as rivals of President Hassan Rouhani resisted any deal that could end the buy-back system, dating back to more than 20 years, which foreign companies are banned from booking reserves or taking equity stakes in local companies.

Iran’s Supreme Leader Ayatollah Ali Khamenei said this month that no new oil and gas deals will be awarded without necessary reforms.

The approval of the contracts by the Resistance Economy Headquarters is critical as the advisory board was formed last year to apply Khamenei’s economy views.

The body is chaired by the First Vice President Eshaq Jahangiri and various cabinet members, including the oil minister.

The contract’s final drafts must still be approved by the government.