Iran is soliciting views from foreign oil companies on how the country may structure new oil contracts to ease cost-recovery and allow booking of reserves, a senior Iranian oil official said.
Iran
is
soliciting views from foreign oil companies on how the country may structure
new oil contracts to ease cost-recovery and allow booking of reserves, a senior
Iranian oil official said.
Iran
is a
long way from being able to put the welcome mat out for foreign oil firms. Western
oil giants were forced to pull out in 2010 as the European Union banned their
participation in the Islamic Republic's oil sector. But an interim nuclear deal
between
Iran
and
six world powers, which takes effect Monday, has revived hopes the investment
ban could be lifted sometime in the future.
Iranian officials have openly courted Western oil executives, eager to lure
their investment and technical know-how. But even before Western sanctions
limited foreign participation in recent years,
Iran
's
tough terms for foreign firms working on energy projects have been a big
obstacle.
In an interview with The Wall Street Journal over the weekend, Mehdi Hosseini,
who heads a committee set up by Iran's oil ministry to revise oil contract
terms, said Tehran was consulting with international oil companies and
soliciting their views on how to make contracts more attractive, should Western
firms be allowed back in.
"We are trying to find a winning formula for both sides," he said. While
declining to name the companies
Iran
is
contacting, he said public consultations would be held next month in
Tehran
on
the matter.
In the past, many companies failed to cover their costs under existing contract
terms, known as "buybacks." Such contracts allow oil companies to be
allocated oil cargoes as a fixed, lump sum for helping develop an oil field. They
make it difficult to recoup costs if budgets swell, as they often do for big
oil projects.
Mr. Hosseini acknowledged that in the past most companies "had (cost)
overruns" and "we couldn't repay" them adequately. He said that
Iran
is
now looking at a "more practical formula to make decisions easier."
Iran
is
also seeking a way for foreign companies to book Iranian oil reserves. Firms
seek to book reserves--a key metric for oil-company investors. But the issue
has been sensitive in Iran. Any contract has to be compatible with Iranian law,
which restricts foreign ownership of its resources.
If the right changes are implemented, and sanctions are lifted, "Iran
(could be) a paradise for U.S. companies," Mr. Hosseini said. He said
Iranian oil costs $5 to $6 a barrel to produce, far lower than in many other
places in the world.
The Islamic Republic also hopes the changes will help Iran catch up to other
Middle Eastern producers--which haven't faced recent oil bans. While many of
its neighbors restrict foreign participation, others--most recently Iraq--have
allowed more participation by global companies. "We want to make sure our
contracts are more competitive than our neighbors, " he said.
Διαβάστε ακόμα
Παρ, 26 Ιουλίου 2024 - 16:04
Παρ, 26 Ιουλίου 2024 - 16:02
Τετ, 24 Ιουλίου 2024 - 15:10
Τετ, 24 Ιουλίου 2024 - 15:06
Τρι, 23 Ιουλίου 2024 - 16:51