Iranian Oil Minister Bijan Namdar Zanganeh praised the capabilities of domestic energy companies to develop oil and gas fields and said the country has more than 100 fields, which can be developed by the Iranian exploration and production (E&P) companies.
Speaking at a ceremony to sign a contract between the National Iranian Oil Company (NIOC) and Pasargad Energy Development Company (PEDC), a domestic E&P company, to develop Sepehr and Jofeir oil fields, Zanganeh hailed the agreement and said he is pleased to see that months of negotiations between the two companies have yielded results ahead of the new Iranian year (which will begin on March 21).
The contract is the first one with an Iranian E&P company under the new Iran Petroleum Contract (IPC) model, the minister added.
He further emphasized that there are jobs for all Iranian oil companies, adding that the country has more than 100 oil and gas fields that the companies can develop.
The CEOs of NIOC and PEDC, Ali Kardor and Mehdi Mir Mo’ezi, signed the contract here in Tehran on Sunday.
The contract is aimed at a maximum production of 110,000 barrels per day with a total output of 512 million barrels from the Sepehr and Jofeir oil fields over a period of 20 years.
Iran’s new format of contracts for oil sector projects would replace the old buyback deals which required the host government to pay the contractor an agreed price for all volumes of hydrocarbons it produced.
Under the new format, different stages of exploration, development and production will be offered to contractors as an integrated package, with the emphasis laid on enhanced and improved recovery.