By 2020 Iran plans to raise $185 billion investments in the oil industry

Almaty. June 2. Silkroadnews – By 2020 Iran plans to raise $185 billion investments in the oil, gas and petrochemical industries, IrTAG reports with reference to Amir Hossein Zamani Nia, Iranian deputy oil minister.

According to him, the government develop plans to attract $185 billion of new investments in all the areas related to the oil industry within the next five years. Of these, $85 billion shall be directed to the development of hydrocarbon production.

The deputy minister also noted that one of the directions adopted within the Tehran strategy for the investments and modernization of the national oil industry is the realization of the Iranian oil contract.

“It is designed to replace the old buy-back system on which Iran agreed to pay investors a fixed price for the entire volume of hydrocarbons produced at the field where the funds are invested. Now, it is assumed that the National Iranian Oil Company (NIOC) will create a joint venture for oil and gas production with foreign companies that will receive a part of the profit. At the same time participation in various stages of exploration, field development and production will be offered to investors in the form of integrated packages. The focus will be placed on improving the reserves recoverability,” he summarized.