Iran Adopts Oil Contract as Glut No Barrier to Boost Output
- Government wants to lure $50 billion a year of investments
- Nation has already boosted oil production 27% this year
Iran Approves a New Oil Contract Model
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Iran approved a new oil contract model, taking the OPEC nation a step closer to welcoming foreign investment in its energy industry and boosting production even more into an oversupplied market.
The contract model was approved at a cabinet meeting Wednesday, according to the official Islamic Republic News Agency. Priority will be given to boosting output at jointly owned oil and gas fields, state radio reported, citing Oil Minister Bijan Namdar Zanganeh. Iran wants to lure international companies that can make long-term investments worth billions of dollars and bring technology after sanctions were eased in January.