| Code: 96231 |

TIN news:   Iran will issue a preliminary list of international energy companies eligible to take part in tenders to develop its oil and gas fields within the next two weeks, Reuters quoted a senior oil official as saying on Monday.
"Not all foreign companies active in the oil industry can participate in Iran's tenders," Ali Kardor, managing director of the National Iranian Oil Company (NIOC), was quoted as saying by the Oil Ministry's .
"Only those international companies that meet the standards of NIOC will be chosen."
Kardor said that, apart from US companies, there were only around 37 companies in the world that might meet Iran's standards.
He said companies would only be eligible that are registered as exploration and production or international oil companies and are also rated by Standard & Poor's, Moody's or Fitch credit rating agencies.
"After creating the first list of international companies, a limited tender will be held," Kardor added.
The tenders will be based on Iran's new oil and gas contracts which have yet to be unveiled after some amendments.
Iran has promised Iran Petroleum Contracts (IPCs) will offer more flexible terms and end a system known as buyback contracts that foreign companies say give them a limited return on investment while denying them any rights to the oil, with the government taking the bulk of the profits.
However Kardor reiterated on Monday that alongside IPCs, oil fields could still be developed through buybacks, engineering, procurement, and construction and engineering, procurement, construction and financing contracts.
Over $100b needed
Kardor also said Iran's oil and gas industry needs an investment of over $100 billion for development.
He said corporate financing is not economical in development of oil and gas fields in Iran because of the time such finances would need.
He said international financial resources can be tapped for providing the sum needed for developing Iran's oil industry.
"As a person who has spent years working in the fields of investment and financing, and is familiar with international financing methods, I believe this method [corporate financing] undoubtedly cannot attract such amounts for Iran's oil industry and at best, only $20 billion could be attracted in that case," he added.
Kardor noted instead, project financing should be taken into account for attracting international finances and this is where buyback deals and the new oil contract model is being considered.

Send Comment

Latest news The most viewed news The most popular topics
Book introduction Magazine introduction Transportation weekly

Multimedia