Iran welcomes foreign companies to energy sector

TEHRAN, May 12 (UPI) -- Foreign business entities are welcome to take part in companies doing business in the manufacturing part of Iran's oil and gas sector, a director said.

Iran has tried to bring more foreign companies into its energy sector since securing sanctions relief from a November interim agreement to curb nuclear activity.

Gholam Reza Shafei, chairman of the board of Iran's Industrial Development and Renovation Organization, said his organization too was eager to court foreign investors.

"IDRO welcomes foreign companies willing to invest in the oil and gas sectors and is ready to cooperate with these companies in the manufacturing of equipment," he said Sunday.

The Iranian government in April said it would revise how it governs oil and natural gas contracts, though sanctions must be lifted for full utilization.

Iran, under the terms of the previous buy-back contracts, paid contractors a set price for oil and natural gas produced. Under the planned new system, state-run energy companies will establish joint ventures with their international counterparts, who will be paid with a share of the output.

Though the Iranian government said it's ready to court more foreign investors, Washington said the country's energy sector is not yet open for business.