NIOC to sign first domestic oil and gas agreements

offshore rig tsuda flickrIran’s Tasnim news agency said that the value of the new contracts is US$2.5bn. (Image source: Tsuda/Flickr)The National Iranian Oil Company (NIOC) will sign the first of its new oil and gas contracts (IPCs) with a domestic firm

The signing of the first IPC will intensify anticipation among international oil majors for long-awaited further contracts in the new format.

According to the managing director Ali Kardor, the Iran Petroleum Contract (IPC) is a cornerstone of the country’s plan to raise crude production to the pre-sanctions level of four million bpd.

The launch of the IPC has been postponed several times as rivals of President Hassan Rouhani resisted any deal that could end the so-called buy-back system, under which foreign firms were banned from owning stakes in Iranian companies. "The NIOC will sign a contract with Setad Ejraye Farman Emam under the IPC to develop the second phase of Yaran field, and EOR (enhanced oil recovery) and IOR (improved oil recovery) contracts for Koupal oilfield,” Kardor was quoted as saying by Fars news agency.

Iran’s Tasnim news agency said that the value of the new contracts is US$2.5bn.

Iran’s Supreme Leader Ayatollah Ali Khamenei had said in July that no new oil and gas contract for international companies would be awarded without necessary reforms.

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