Iran oil contracts model to be finalised in weeks: minister

Published Mon, Aug 31, 2015 · 08:12 AM

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[DUBAI] Iran expects to finalise the wording for a new model for international oil contracts in the next three weeks, the oil minister said on Monday, as Tehran seeks to boost recovery from its fields with the help of foreign companies.

The ministry is expected to present the new oil contracts to investors at a conference in London in December, ahead of a likely lifting of international sanctions in 2016.

"Iran has put together a new model for oil contacts that allows access to regional and international markets and paves the way for long-term strategic cooperation with major companies," Oil Minister Bijan Zanganeh was quoted as saying by the Shana news agency.

"We are hopeful that this new model is approved by the government within this (Iranian calendar) month."

Iran and six major world powers reached a landmark nuclear deal on July 14, clearing the way for an easing of international sanctions on Tehran, higher oil exports and more international investment on undeveloped oil and gas fields.

Iran is aiming to add 500,000 barrels per day (bpd) to production within two months of easing Western sanctions that have halved shipments in recent years, and as much as 1 million bpd in six to seven months.

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