Iran Oil Minister Bijan Namdar Zanganeh has established an ad hoc committee to modify buyback oil contracts in a bid to make them more attractive for potential foreign investors.
The committee is headed by Mehdi Hosseini, a veteran oil official, who currently advises Zanganeh on contracts, the Oil Ministry’s official news agency, SHANA, reported.
Zanganeh is determined to make the necessary preparations within the framework of new and more attractive contracts in view of winning investment from international oil companies.
The minister has asked the committee to benefit from the views of Iranian experts and consultation of international companies, and study the experience of other countries in the formulation of contracts.
Under a buyback deal, the host government agrees to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.
Zanganeh, who held the oil portfolio for eight years from 1997 to 2005, has said that Iran will soon increase its oil exports in defiance of restrictions imposed on the Islamic Republic’s energy sector.
The minister recently voiced Iran’s willingness to cooperate with any foreign energy firms which can help the country’s oil exploration and extraction.