Iran bags $2bn oil contracts

Iran will look to redevelop its existing fields

Iran has estimated recoverable oil reserves of 140 billion barrels.
Iran has estimated recoverable oil reserves of 140 billion barrels.

Iran has already secured $2bn worth of trade deals since a deal was reached to end international sanctions, according to the country’s minister of industry, Mohammad Reza Nematzadeh.

Speaking to journalists at the Iran-EU Conference, Trade and Investment Forum, Iran’s Deputy Oil Minister Amir Hossein Zamani-Nia said that Iran’s priority was to improve recovery from its ageing oilfields and develop both onshore and offshore reserves shared with its neighbors in the south and the west. Iran is ready to sign contracts for those fields for a period of 20-25 years, he said.

“This model contract addresses some of the deficiencies of the old buyback contract and it further aligns the short- and long-term interests of parties involved”, he said.

When asked about Iran increasing its oil and gas trade deals with Europe, Zamani-Nia said: “It does not make sense for Iran to think of supplying gas to Europe through a pipeline, but LNG may be a different matter.”

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