Iran approves new petroleum and gas contracts

Iran approves new petroleum and gas contracts

Iranian officials approved the new Iran Petroleum Contract (IPC) yesterday after a series of political delays.

The Iranian government’s chief economic advisory body, the Resistance Economy Headquarters, signed off on the contract pending the inclusion of several amendments, Reuters reports.

The launch of the contract was delayed after rivals of President Hassan Rouhani rejected any deal that could do away with the ‘buy-back system’, which prevents foreign firms from booking reserves or taking equity stake in Iranian companies.

The IPC is an important step forward as Iran looks to expand its energy sector following the removal of international sanctions early this year. A senior official with the state-run National Iranian Oil Co. has said that the country is looking to double its crude exports — provided the increase is absorbed by global markets

According to the Deputy Petroleum Minister for International Affairs and Trading, Amir Hossein Zamaninia, the IPC will likely be signed off within the next three months.

Zamaninia also said that the country anticipates attracting US $40 or $50 billion in petroleum investments annually.