Oil majors press Iran for sweeter terms

Those relying on non-institutional money to feel impact

ABU DHABI, Nov 10, (RTRS): Iran will have to offer lucrative contracts terms to draw back international oil companies at a time when the oil industry is more focused on profitability as it gears up for a longer period of low oil prices, executives said on Tuesday.

Iran said in September it had approved a draft of international oil and gas contracts to attract foreign investors and oil buyers once international sanctions are lifted but has not provided details so far.

The OPEC member will announce new oil and gas contracts at conferences in Tehran and London on Nov 21-22 and Feb 22-24 respectively.

“It is not only questions of resources or opportunities, it is a question of profits,” Total’s chief executive Patrick Pouyanne told a conference in Abu Dhabi, capital of the United Arab Emirates. “We will be well positioned to look at opportunities in gas, oil, petrochemicals and marketing. But all that is subject to good contractual conditions, so we will see.”

Pouyanne said Total was likely to attend the Tehran conference where the oil ministry will reveal the framework of the contracts.

Iran said the new ones would be a major improvement not only on the so-called buy-back contracts but also on those that neighbour Iraq offered to foreign oil companies in 2009-2010.