Protests Against New Oil Contracts; A Protest Against Rouhani's Government

The protests by conservatives in Iran against the new oil contracts continue. On Sunday, Ahmad Tavakoli, a representative from Tehran in the Islamic Consultative Assembly, objected to the arrest of several Basij students who had gathered in front of the Ministry of Oil on Saturday, citing Article 24, Clause 11 of the Assembly's internal regulations. These students had protested against the new oil contracts and, according to the political director of the Tehran governor's office, they did not have permission to gather. Ahmad Tavakoli stated, "The importance of oil contracts is so high and their problems are so numerous that if it remains this way, which hopefully it won't, even if dozens of nationwide protests are held, it would still be insufficient." He pointed out that the gathering was illegal but emphasized the need to protest against the new oil contracts. Ali Larijani, the Speaker of the Islamic Consultative Assembly, responded to Tavakoli's comments by saying that contracts cannot be arranged through protests. He remarked, "Mr. Tavakoli, let's assume you have an opinion that some clauses of this contract are problematic. There are ways to resolve it. Experts and some agencies have provided their opinions. We have also told the Compliance Committee to address it. In any case, there is an order in the country to address these matters. These issues cannot be resolved in the streets." Previously, representatives such as Alireza Zakani, Elias Naderan, Hossein Najabat, Ahmad Amirabadi, and Mohammad Dehghan had stated that the new oil contracts are contrary to the Constitution. Mehdi Koochakzadeh, a representative from Tehran, also protested the new oil contracts during a public session on Sunday. He said, "Regarding the JCPOA, they did not allow the Assembly to even be informed about its appendices. They did whatever they wanted, and we saw what happened. Regarding the new oil contracts, they say it is confidential. When young people protest in front of the Ministry of Oil asking why the law is not being followed, they are beaten. Where should the Assembly intervene in these matters?" Fereydoun Khavand, an economic analyst, stated, "Conservatives fear that Western oil companies will come to Iran, increasing Iran's oil production, which would be recorded as a positive achievement for Rouhani's government. Secondly, if foreign companies come to Iran, some activities of certain companies, foundations, and the IRGC may be reduced or halted." Khavand further explained that the main opposition to the new oil contracts, or IPC, is primarily against Rouhani's government, as Rouhani and the Iranian Ministry of Oil, especially Minister Zangeneh, wish to increase Iran's oil production through high-level partnerships with major Western oil companies. This has raised concerns among the conservative faction of the Islamic Republic's ruling body. Protests against the new oil contracts come as Ali Kardan, the Deputy for Investment and Financing at the National Iranian Oil Company, announced in an interview that Iran has canceled the London conference scheduled for March 3-5 to attract foreign investments in Iran's oil and gas industry and introduce the new oil contracts. The reason for the cancellation was reported as issues with obtaining visas due to the British embassy's visa section not being operational in Tehran. On January 25, Judge Nasser Sarraj, head of Iran's General Inspection Organization, announced that this organization has reviewed the new oil contracts and submitted its report to the leaders of the three branches of government. According to Fars News Agency, he did not clarify whether any violations were found in the investigations. In recent months, the Iranian Ministry of Oil has unveiled a new model of oil contracts with foreign investors or IPC. According to this model, the contracts are long-term, foreign companies are allowed to sell part of Iran's oil, and on the other hand, the latest technology is expected to be transferred to Iranian parties. Bijan Namdar Zangeneh, Iran's Minister of Oil, stated last December at the conference introducing the new model of Iran's oil contracts, which was attended by 153 foreign companies from 45 countries, that "the new contracts create the necessary attraction for foreign investment in Iran and benefit domestic companies." Zangeneh added, "The experience of more than ten international contracts in the form of buy-back agreements, the feedback from these contracts, and the opinions of contracting companies, experts, and domestic specialists led us to prepare a contractual model that has more appeal in today's competitive global conditions for our contracting parties and also meets our technical objectives and ensures the implementation of our demands." Khavand concluded that given the significant changes in the global energy market, major Western oil companies can pursue new resources under better conditions. He emphasized that the buy-back contracts that Iran has offered to foreign oil companies since the Islamic Revolution are no longer attractive to them. Today, due to significant changes in the global energy market, these major oil companies can pursue new resources under better conditions, such as the oil market in Iraq or unconventional oil contracts in the U.S. and elsewhere. The new Iranian oil contracts or IPC, introduced on Saturday, December 7, in a conference with foreign companies, are 25 years long, and under this model, the foreign company provides all the necessary capital and technology for the project and will own a percentage of the produced product after reaching production.