Iran expects balance to return to oil market

TIN news:   Iran says it expects a balance to be eventually restored between supply and demand in the oil market which is presently oversaturated with excess production.

"The oil market is oversupplied now but there are expectations that there will be balance between demand and supply in the market," Iran’s Petroleum Minister Bijan Zanganeh has been quoted by the media as saying. 
Zanganeh’s remarks are seen by analysts to have been meant to soothe market concerns over the impacts of Iran’s incoming production rise after it awards the first of a new generation of its oil contracts – what is expected to take place in the near future. 
Iran’s new format of oil contracts is replacing buyback deals. Under a buyback deal, the host government agrees to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.
But under the new contracts, the NIOC will set up joint ventures for crude oil and gas production with international companies which will be paid with a share of the output.
Under the new contracts, different stages of exploration, development and production will be offered to contractors as an integrated package, with the emphasis laid on enhanced and improved recovery.
"The government will approve the new contracts on Wednesday.
“Iran's priority is developing jointly owned oil and gas fields, as well as those in which we are after improved oil recovery." Zanganeh said.
Amir Hossein Zamaninia, Iran’s deputy petroleum minister for international affairs, said in mid-July that the first awards of the new format of oil contracts could happen within the next 3-4 months