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Thursday, 4 August 2016

Iran adopts oil contract as glut no barrier to boost output |

Iran adopts oil contract as glut no barrier to boost output |

"Iran approved a new oil contract model, taking the nation a step closer to welcoming foreign investment in its energy industry and boosting production even more into an oversupplied market.

The contract model was approved at a cabinet meeting on Wednesday, according to the official Islamic republic News Agency. Priority will be given to boosting output at jointly owned oil and gas fields, state radio reported, citing Oil Minister Bijan Namdar Zanganeh. Iran wants to lure international companies that can make long-term investments worth billions of dollars and bring technology after sanctions were eased in January.

Iran has been working on the oil contract model for the past two years. The country hopes companies will invest as much as $50 billion a year. It’s already succeeding in meeting its pledge to regain market share it lost due to the sanctions over its nuclear program. Production was 3.55 million barrels a day in July, 27 per cent higher for this year and the most since December 2011, according to data compiled by Bloomberg."

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