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News // Economy

Iran to name foreign companies eligible for oil tenders

19 July 2016 , 14:17Neftegaz.RU597



Iran will issue a preliminary list of foreign companies eligible to participate in tenders to develop its oil and gas fields within the next 2 weeks, a managing director of the NIOC Ali Kardor, said on 18 July, 2016.
 

«Only those international companies that meet the standards of NIOC will be opted,» Kardor said. 

The official emphasized that there were only around 37 companies in the world that might meet Iran’s standards. That, he added, excludes American companies. 

Kardor emphasized that companies would only be eligible that are registered as exploration and production or international oil companies and are also rated by Standard & Poor’s, Moody’s or Fitch credit rating agencies.

«After creating the first list of international companies, a limited tender will be held,» he stated.

The tenders will be based on Iran’s new oil and gas contracts which have yet to be unveiled after some amendments.

Nevertheless, Kardor emphasized that alongside the new contracts, oil fields could still be developed through the old format of buy-backs, engineering, procurement, and construction and engineering, procurement, construction and financing contracts.

 

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.

 

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.

Zamaninia also emphasized that the priority for the country as per the upcoming oil tenders will be the development of joint fields.

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