According to the state oil company, NIOC (National Iranian Oil Company), Iran is expected to sign $10-15 billion of oil deals within a year under a new contract model which is undergoing modifications.
In September, the Iranian government approved a draft of the Iran Petroleum Contract (IPC), but Rokonoddin Javadi, Managing Director of NIOC said last week that the formula still needs “correction, completion and final editing.”
“Therefore, it is expected that $10-15 billion of contracts will be signed under the IPC by the end of the next year (early 2017). However, the signing does not mean absorption since it will take some time for the resources to be absorbed,” he said.
Minister of Petroleum Bijan Zangeneh also said Iran needs annual investment of $40 billion in its oil industry in the next two years.
“There are eight or nine main fields which produce 75% of the country’s oil. They are now aged above 60 years and their yield is steeply declining and they need investment. Besides, Iran must raise its oil production to 4.6 million barrels per day (bpd) in the next two years,” Zangeneh added.