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Iran approves petroleum contract, anticipates fresh oil revenue

Iran hopes to attract some $40 to $50 billion in new oil investment annually.

Iranian officials approved the new Iran Petroleum Contract (IPC) yesterday after a series of political delays.

Reuters reported that the Iranian government’s chief economic advisory body, the Resistance Economy Headquarters, signed off on the contract pending the inclusion of several amendments.  

The launch of the contract was delayed after rivals of President Hassan Rouhani rejected any deal that could do away with the ‘buy-back system’, which prevents foreign firms from booking reserves or taking equity stake in Iranian companies.

The IPC is an important step forward as Iran looks to expand its energy sector following the removal of international sanctions early this year. A senior official with the state-run National Iranian Oil Co. has said that the country is looking to double its crude exports — provided the increase is absorbed by global markets

According to the Deputy Petroleum Minister for International Affairs and Trading, Amir Hossein Zamaninia, the IPC will likely be signed off within the next three months.

Zamaninia was also quoted as saying that the country anticipates attracting US $40 or $50 billion in petroleum investments annually.

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