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Iran plans to lure 185 bln USD from investors to upgrade oil industry

Xinhua, June 1, 2016 Adjust font size:

Iran is planning to attract 185 billion U.S. dollars of foreign investment to boost its oil, gas and petrochemicals industries by 2020, an Iranian energy official told Tasnim news agency on Wednesday.

Development of Iran Petroleum Contract (IPC) is one of the strategies Tehran has adopted to attract investment and upgrade the country's oil industry, Iranian Deputy Oil Minister for International Affairs Amir Hossein Zamaninia was quoted as saying.

To this end, the country is drawing up plans to draw 185 billion dollars of investment in all sectors of the oil industry within a five-year period, Zamaninia said, adding that 85 billion dollars of the investment will go to the upstream sector of the industry.

Iran has cancelled an oil conference that was scheduled for February 22 to 24 in London to unveil new terms for the IPC.

Iran's IPC, if implemented, would help the country attract financing from Asian and European investors. The new contracts are replacing traditional Iranian "buy-back" contracts which are no longer attractive to foreign companies.

Under the contracts, National Iranian Oil Company will set up joint ventures for crude oil production with international companies which will be paid with a share of the output.

Iran and the world powers reached a nuclear deal last July, which was implemented in January and would enable the country to re-engage with energy firms of the world to develop its oil and gas fields. Endit