Iran to hold a tender on a new model of oil contracts prior to the end of October

Almaty. August 31. Silkroadnews – Iran will announce a tender for the development of the first oil field using a new model of oil contracts in the month of Mehr of the Iranian calendar, IrTAG writes.

«The first tender for the development of the deposit using a new oil contract model will be announced before the end of the Iranian month of Mehr (that ends on October 21). The first in the list of fields to be developed using a new contract rules is the South Ozodagon field (province of Huziston)», IrTAG quoted Ali Kardor, managing director of National Iranian Oil Company, saying.

Earlier he stated within the next two years it was planned to sign around $25-billion contracts under the new rules model.

The document entitled «On general terms, principles and forms of oil and gas contracts» developed by the government was submitted to the Iranian parliament in early August. The proposed new rules were reported to differ significantly from the previous regulations governing the conclusion of agreements in the field of oil and gas production. The proposed draft regulates the rights, duties and responsibilities of the contracting parties, their financial relations, insurance and many other questions.

According to the Iranian Oil Minister Bijan Zangeneh, the project developed by his department provides for changes in the order of tenders for the development of the Iranian oil and gas fields for foreign companies.

At the same time many members of the Iranian parliament opposed the bill as proposed. They believe the document threatens the country's national interests, thus, insist on its further review and development.