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Tuesday, 4 October 2016

Iran, OPEC’s Big Winner, Will Sign Landmark Oil Contract - Bloomberg

Iran, OPEC’s Big Winner, Will Sign Landmark Oil Contract - Bloomberg:

"Iran, fresh from an OPEC meeting where it won significant concessions from regional rival Saudi Arabia, will accelerate the rejuvenation of its sanctions-ravaged energy industry on Tuesday when the state producer signs a new-model oil investment contract.
National Iranian Oil Co. will complete a $2.5 billion deal with a group of local companies, according to an oil ministry official. The new type of contract, designed to better reward investment in crude and natural gas production, is seen by Oil Minister Bijan Namdar Zanganeh as crucial in increasing the country’s long-term export potential.
Although it may take years for new investment deals to bear fruit, the signing will cap a good few days for Zanganeh, who returned from last week’s OPEC meeting in Algiers having secured Iran’s right to pump more oil even as Saudi Arabia and its Gulf Arab allies agreed to curb output. President Hassan Rouhani’s government has argued that it should be allowed to return production to levels achieved before international sanctions curbed shipments.

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