Iran Announces Primary Oil Tender for mid-Oct

Iran will hold its first tender of an oil field for development under the new contract model around the end of the Iranian month of Mehr on Oct. 21, Managing Director of National Iranian Oil Company (NIOC) stated.

The South Azadegan field is on the list for the first tender under the Iran Petroleum Contract (IPC), Managing Director of the National Iranian Oil Company Ali Kardor (pictured) told reporters in a press conference in Tehran on Tuesday.

Next week, we will be sending invitations to foreign companies and ask them to announce if they are interested,” he said.

Iran has been working on the IPC for the past two years in order to lure investment to its oil and gas sector. The Ministry of Petroleum has modified the contract several times amid criticism that it might pave the way for renewed squandering of national wealth similar to oil concessions to the UK under the 1901 D’Arcy Agreement.

Domestic companies will be offered small- and medium-size fields even sooner than Mehr, the official said, stating that priority is to develop fields with a recovery rate of under 20%.

Confidentiality agreements signed with oil companies will be sent to the Supreme National Security Council, Kardor said.

The new oil contract model has been modified several times to satisfy those who say it has serious flaws. Minister of Petroleum Bijan Zangeneh took the latest version to parliament this month to discuss final touches to the contract before presenting it to oil companies.

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