Iran Considers New Conditions for Its Oil Contracts

The Wall Street Journal, citing a senior official from the Iranian oil company, reports that the country is preparing to offer new lucrative contracts to international companies if it reaches a nuclear agreement, while also seeking to acquire more technology and partnerships. The new contracts for international oil and gas companies are expected to be more profitable and longer-term, while they also hope to enter into a reliable partnership with Iranian companies. Ali Kardar, the deputy for investment and financing at the National Iranian Oil Company, stated that the new contracts, which Iran has negotiated with foreign companies but whose details have not yet been published, offer a higher amount for energy extraction. At the same time, they are longer-term and encourage joint investment from the early stages of field development. On the other hand, foreign companies are expected to provide their technology and management experience to Iranian counterparts more than ever. Mr. Kardar said, 'They will have the motivation to produce more and transfer technology.' In its latest annual report published on June 10, British Petroleum (BP) named Iran the largest gas source in the world and ranked the country fourth globally in terms of oil reserves. Iran's oil production has significantly declined in recent years due to extensive international sanctions related to Tehran's nuclear program. However, the possibility of reaching a final agreement on the nuclear program has opened new horizons. In mid-May, the French oil company Total stated that it would resume its natural gas liquefaction project in Iran if sanctions against the country were lifted. A month earlier, reports emerged about a visit by a delegation of American oil companies to Iran. Additionally, Shell has stated it is ready to pay its debt to Tehran 'once the legal grounds are established,' and ExxonMobil has also announced it is 'waiting for a final nuclear agreement with Iran.' Iran and six world powers are currently engaged in negotiations, with the aim of drafting a final document for the nuclear agreement by July 1. However, the Associated Press recently reported, citing diplomats familiar with the nuclear talks, that the parties still disagree on all major issues. The Wall Street Journal quoted Amir Zamani-Nia, a senior official at Iran's Ministry of Oil, stating that the energy sector in the country will require $185 billion in investment over the next six years.