Iran signs seven initial oil deals with foreign firms

dubai — Iran has signed seven new initial agreements with foreign oil companies, Ali Kardor, managing director of the National Iranian Oil Company (NIOC), was quoted as saying by the oil ministry’s news agency SHANA on Tuesday.

The contracts to study Iranian oilfields were signed with firms including Austria’s OMV, France’s Total, Germany’s Wintershall, Indonesia’s Pertamina, Russia’s Lukoil and Zarubezhneft, he said.

Iran needs foreign investment to repair and upgrade its oil and gas fields and is also seeking the transfer of technology to its oil industry after a decade of isolation.

Many Western and Asian oil firms are still waiting for Tehran to unveil oil and gas contracts (IPCs) with new terms.

Iran will invite international oil companies to submit bids in October under the long-awaited new contract model for energy investors, as the Opec producer seeks billions of dollars to boost output after years of international sanctions.

The government will invite companies to bid to develop the South Azadegan field on Iran’s southwestern border with Iraq during the week of October 1420, state news agency IRNA quoted Kardor.

“We are calling for technical documents for a tender offer under the framework of the new oil contract model,” Kardor said.

Iran’s cabinet approved the new oil and natural gas contract model on August 3, hoping to attract as much as $50 billion a year in foreign investment.

Oil prices rise

Oil futures rose on Tuesday supported by production suspensions in the US Gulf due to an expected tropical storm and speculation that producers meeting in Algeria next month will act to prop up prices.

Brent crude futures were trading at $49.58 per barrel at 1358GMT, up 32 cents from the previous close.

US West Texas Intermediate (WTI) crude was up 39 cents at $47.37 a barrel. — Agencies