Policy & Regulation

Iranian cabinet approves new oil and gas contract

Iran’s new oil and gas framework has been given the green light. But while this is an important step, several questions remain unanswered Iran’s new oil and gas framework has been given the green light. But while this is an important step, several questions remain unanswered.
By Verity Ratcliffe 5 August 2016 0 21396
A rig in Iran’s South Pars field. The country has approved a new oil and gas contract for IOCs. (Statoil)

Iran’s cabinet approved the latest draft of the country’s oil and gas framework on Wednesday, paving the way for contracts and investment in the Iranian oil and gas sector.

The Iran Petroleum Contract (IPC) replaces the country’s old buy-back model, which was heavily criticised by IOCs for failing to offer sufficient upside to justify investment. The original draft was unveiled to oil companies in December 2015 and has since been revised in response to criticism from figures inside Iran, including the country’s Supreme Leader Ali Khamenei.

Energy...