Iran set to name oil companies eligible to participate in tenders

iranwebIran's oil sector is rapidly recovering lost ground. (Image source: Chase Clausen/Shutterstock)Iran will issue a preliminary list of international energy companies eligible to take part in tenders to develop its oil and gas fields within the next two weeks, a senior Iranian oil official is reported to have said

According to a Reuter's report, Ali Kardor, recently appointed managing diretor of the National Iranian Oil Company (NIOC), said on 18 July that only those international companies that meet the standards of NIOC will be chosen to participate in Iran's tenders, and that, apart from US companies, there were only around 37 companies in the world that might meet Iran's standards.

He said companies would only be eligible that are registered as exploration and production or international oil companies and are also rated by Standard & Poor's, Moody's or Fitch credit rating agencies.

"After creating the first list of international companies, a limited tender will be held," Kardor added.

It is understood that the tenders will be based on Iran's new oil and gas contracts (IPCs), the details of which have yet to be released, with some suggesting the delays could reflect domestic political opposition. Iran has promised that the IPCs will offer more flexible terms and end the system of buy-back contracts which have been unpopular with foreign companies. While the country has made substantial progress in the oil sector – with production up 750,000 bpd since the easing of sanctions at the beginning of the year and exports approaching pre-sanctions levels – its prospects for attracting further foreign investment, urgently needed to boost recovery rates and further increase production, will be contingent on more favourable investment terms.

Kardor is reported to have said that oilfields could also still be developed through buy-backs or on an engineering, procurement, construction and financing (EPCF) basis.

 

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