National Iranian Oil Co. (NIOC) will sign the first of its new oil and gas contracts with a domestic firm on Oct. 4, its managing director said.
The signing of the first Iran Petroleum Contract (IPC) on Oct. 4 will intensify anticipation among international oil majors for long-awaited future contracts in the new format.
The IPC is a cornerstone of the country's plan to raise crude production to the pre-sanctions level of 4 million barrels per day.
The launch of the IPC has been postponed several times as hardline rivals of pragmatist President Hassan Rouhani resisted any deal that could end the so-called buyback system, under which foreign firms were banned from owning stakes in Iranian companies.
"Tomorrow, NIOC will sign a contract with Setad Ejraye Farman Emam under the IPC to develop the second phase of Yaran Field, and EOR and IOR contracts for Koupal oil field," Ali Kardor, managing director of NIOC, was quoted as saying by Fars news agency.
Iran's Tasnim news agency said the value of the new contracts is $2.5 billion.
Setad Ejraiye Farmane Hazrate Emam, or Setad, is one of the most powerful organizations in Iran that works directly under the command of the Islamic republics highest authority, Supreme Leader Ayatollah Ali Khamenei.
Khamenei said in July that no new oil and gas contract for international companies would be awarded without necessary reforms.
Kardor said both the president and the oil minister have made it clear that no IPC would be signed unless the Supreme Leader is happy with the new form of contracts.
Oil majors have said they would only go back to Iran if it made major changes to the buyback contracts of the 1990s, which companies such as France's Total or Italy's Eni said made them no money or even incurred losses.
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