Iran has changed the way in which it offers contracts to foreign energy companies inÂ an attempt to attract up to $30bn of new investment.Â The terms of the new oil contracts will be more favourable to foreign investors,Â who will beÂ allowed a greater stake in long-term profits.Â
Iran is preparing forÂ the lifting of sanctions following the nuclear deal with six world powers inÂ July.Â The country has some of the biggest oil and gasÂ reserves in the world.
The new contracts were announced at a conference in Tehran attended by many of theÂ world’s major energy companies. There were,Â however, no US companies present.
The new contracts put anÂ end to the so-called buyback model, which has historically deterredÂ foreign investors, where overseas contractors developed and operated an oil field beforeÂ handing it over to Iran.Â Now, more lucrativeÂ longer-term contracts will be offered, where foreign companies can retainÂ a stake in the field.Â About 50 oil and gas projects are expected to be unveiled during the Tehran conference,Â taking place onÂ Saturday and Sunday.Â
“The contract models introduced today are not perfect or ideal, but an effective andÂ responsive model for both sides,” Oil Minister Bijan Namdar Zanganeh said.