Iran to facilitate conditions to win back foreign investment

Iran is planning to facilitate conditions for foreign investment in its energy sector in a bid to attract foreign companies, a deputy oil minister says.

Deputy Oil Minister for International Affairs and Commerce Ali Majedi said on Tuesday that the Ministry is trying to facilitate conditions to encourage foreign firms to participate in the country’s oil and gas projects.

Majedi, who was addressing a delegation of more than 100 French businessmen in Tehran, said Iran’s oil and gas industries need USD 230 billion in investment, including USD 150 billion for the upstream oil sector.

The official added that Iran’s Oil Ministry is revising oil contract terms and offering investment incentives to potential investors.

Among the French businessmen visiting Tehran are representatives of France’s energy giant, Total, and international energy provider, GDF Suez.

On Sunday, Mehdi Hosseini, a top advisor to Oil Minister Bijan Namdar Zanganeh, said the ministry plans to hold a conference in London next July to introduce new contract terms to international companies.

Last September, Zanganeh established the committee, led by Hosseini, to modify buyback oil contracts.

Under a buyback deal, the host government agrees to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.

World oil giants have voiced their readiness to return to Iran following the easing of sanctions against Iran in light of the implementation of Tehran’s nuclear deal with the six world powers.

According to Iranian officials, Spain’s Repsol, Royal Dutch Shell , British Petroleum (BP), France’s Total, Italy’s Eni and Russia’s Lukoil have shown willingness for investment in Iran.