Daily Management Review

Iran Will Present 45 Oil and Gas Projects in London


Iran chose the 45 oil and gas projects to introduce to international investors at a conference in London on 14-16 December. The conference participants discuss the procedure for the conclusion of new contracts on the eve of the auction for the right to develop fields in Iran.

Photo By Abdolreza Mohseni
Photo By Abdolreza Mohseni
Tehran intends to increase oil production to 5.7 million barrels a day, said the head of the Iranian Committee for the revision of oil contracts Mehdi Hosseini. In July, Iran was producing 2.85 million barrels per day.

Iran will provide potential investors two to three months to decide on participation in tenders, Hosseini stressed. "The exact timing will have been determined by the time of the conference," - said the Iranian official.

The auctions on the field development will lead to the conclusion of "contracts with a minimum guarantee of compensation." This means that investors will not get ownership of mineral resources, but will receive part of the proceeds or part of the oil produced.

Oil production in Iran costs $ 8-10 per barrel, so "our projects will be attractive to investors," said Hosseini.

"The fall in prices from $ 100 a barrel to around $ 50 a barrel is a short-term phenomenon. If you look at the international oil industry in the long term, demand will start to grow and, accordingly, will increase prices", - concluded Hosseini.

source: bloomberg.com