Continued Opposition to New Oil Contracts

Members of parliament are set to meet on Sunday in a closed session with the Minister of Oil to discuss oil contracts. According to ISNA, Behrouz Namati, spokesman for the parliamentary board, announced this news, stating that the decision was made due to the importance of the issue and the multiple concerns surrounding it, as $150 billion is expected to be invested in the oil and gas sector over five years. Two years ago, Iran introduced a new type of oil contract to foreign companies, proposing the development of 49 oil and gas fields. However, since the conference introducing the new model of Iran's oil contracts, attended by participants from 45 countries and 335 companies from Iran and around the world, some hardliners have strongly opposed this type of contract, particularly its long duration. Nasir Shirkhani, an oil and energy expert residing in London, believes that the Ministry of Oil has no choice but to create attractions for foreign investors to encourage them to engage in transactions with Iran. Mehdi Varzi, an international oil expert also based in London, evaluates the drafting of new contracts positively but believes it remains to be seen how they will perform in practice. The parliament's decision to review the new oil contracts comes after the Mehr news agency reported on August 9 that Eshaq Jahangiri, the First Vice President, stated that 'these contracts have been signed with 150 amendments and communicated to the Ministry of Oil.' He noted that these contracts will not be presented to parliament as a bill, stating, 'The oil law, which is a parliamentary resolution, stipulates that the general conditions of oil contracts should be approved by the government, and the Ministry of Oil should operate within that framework.' Jahangiri referred to 'the sabotage of some regional countries' in the approval of these contracts, saying, 'Some foreign countries that share fields with Iran and would prefer not to see Iran's capacities increase, have a group that spends money inside the country to obstruct the contracts, but contracts will definitely be signed soon.' Iran has 27 shared oil and gas fields, and reports indicate that Arab countries produce 7 to 8 times more oil and gas from these fields than Iran. Iran expects significant investments in oil, gas, and petrochemical projects over the next ten years, with hopes for foreign investment.