Iran oil minister orders energy contract overhaul: Shana | ASHARQ AL-AWSAT

Iran oil minister orders energy contract overhaul: Shana | ASHARQ AL-AWSAT:

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Iranian oil minister Bijan Zanganeh speaks during a news
conference at the oil ministry in Tehran in this March 8, 2005,
file photo. (REUTERS/Raheb Homavandi/Files)

Iran’s new oil minister has ordered the revision of energy project contracts to make them more attractive to foreign investors, a National Iranian Oil Company (NIOC) executive told oil ministry news service Shana.
Iran’s long insistence on paying contractors with oil made projects unattractive to foreign investors long before Western sanctions made it almost impossible to work in the isolated Islamic republic.

Tehran began offering more attractive production-sharing contracts (PSCs) to some Indian companies earlier this year in the hope they would help revive its decaying energy sector.

Oil minister Bijan Zanganeh has ordered a wider review of Iran’s oil contracts because the buy-back deals are particularly unsuitable for the enhanced oil recovery projects NIOC needs to attract investors to revive its ageing oil fields."

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