Iran signs con­tracts to sell crude to Euro­pean firms

Pakistan Observer - - ECONOMY WATCH -

TEHRAN—Iran signed deals to sell crude oil to seven Euro­pean com­pa­nies, an Ira­nian oil of­fi­cial was quoted as say­ing by semi-of­fi­cial Mehr news agency on Sun­day.

Long-term deals are signed with Saras SpA and Eni of Italy, Spain’s Rep­sol, Hel­lenic Pe­tro­leum SA of Greece, France’s To­tal, Switzer­land’s Vi­tol Group as well as Lukoil of Rus­sia, ex­ec­u­tive di­rec­tor for in­ter­na­tional af­fairs at Na­tional Ira­nian Oil Com­pany (NIOC) Mohsen Qam­sari said.

“So far, agree­ments for the sale of nearly 700 thousand bar­rels per day (bpd) have been signed” with the Euro­pean firms, Qam­sari said, adding that the crude ex­ports have been al­ready started for the com­pa­nies.

Ac­cord­ing to the re­port, Iran’s oil ex­ports has reached 2.1 mil­lion bpd, from some one mil­lion (bpd) dur­ing the sanc­tion pe­riod over the past years, and it is planned to hit a to­tal of 2.5 mil­lion bpd by the end of sum­mer 2016.

The newly de­vel­oped Iran Pe­tro­leum Con­tract (IPC) is one of the strate­gies Tehran has adopted to at­tract in­vest­ment and up­grade the coun­try’s oil in­dus­try, Ira­nian Deputy Oil Min­is­ter for In­ter­na­tional Af­fairs Amir Hos­sein Za­maninia said ear­lier this month.

To this end, the coun­try is draw­ing up plans to draw 185 bil­lion dol­lars of in­vest­ment in all sec­tors of the oil in­dus­try within a five-year pe­riod, Za­maninia said, adding that 85 bil­lion dol­lars of the in­vest­ment will go to the up­stream sec­tor of the in­dus­try.

Iran’s IPC, if im­ple­mented, would help the coun­try at­tract fi­nanc­ing from Asian and Euro­pean in­vestors. The new con­tracts are re­plac­ing tra­di­tional Ira­nian “buy-back” con­tracts which are no longer at­trac­tive to for­eign com­pa­nies.

Un­der the con­tracts, NIOC will set up joint ven­tures for crude oil pro­duc­tion with in­ter­na­tional com­pa­nies which will be paid with a share of the out­put.

Iran and the world pow­ers reached a nu­clear deal last July, which was im­ple­mented in Jan­uary and would en­able the coun­try to re-en­gage with en­ergy firms of the world to de­velop its oil and gas fields.—Xin­hua

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