Iran to work through joint ventures under new oil system

Feb. 24, 2014 at 5:47 AM

TEHRAN, Feb. 24 (UPI) -- Iran will work "shoulder-to-shoulder" with foreign energy companies in joint ventures set up under a new contract system, a government official said.

Mehdi Hosseini, director of an Oil Ministry committee tasked with revising Iran's oil contracts, said the government was scrapping buy-back contracts in favor of joint ventures with international energy companies.

"Under new contracts, Iranian experts will work shoulder-to-shoulder with foreign investment companies in order to become familiar with the latest technologies of the world," he was quoted as saying Sunday by Iran's state-funded broadcaster Press TV.

Under the former system, Iran paid contractors a pre-determined price for the hydrocarbons produced.

In the new system, the National Iranian Oil Co. forms joint ventures with international companies that will get a portion of resources produced.

Representatives from French energy company Total were among delegates who visited Tehran in early February as part of a French trade mission.

Iran says it's ready to start courting foreign investors now that it secured sanctions relief through an interim nuclear agreement reached in November with Western powers.

Like Us on Facebook for more stories from UPI.com  
Latest Headlines
Top Stories
Compact cannon for British armored vehicles
Australia orders airborne refueling tankers
Kraft-Heinz merger forms world's fifth-largest food-beverage company
New Zealand military receives medium heavy military trucks
Mastercard will let users pay with their face