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Zanganeh ... the country can profit from oil prices as low as $7 a barrel
Iran plans to issue tenders to develop its oilfields this summer, as the government is expected to approve a new model oil contract designed to attract investors “in a short amount of time,” Oil Minister Bijan Namdar Zanganeh said in an interview with the Iranian Students News Agency (Isna).
Iran will initially seek development of fields along its border, Isna reported. Tenders will also be issued for exploration, it said.
“One of the most important challenges is to benefit from several joint fields,” Zanganeh said in the interview.
Iran needs to increase the amount of oil it can produce from fields and “for this we need technology and management more than finances and this is why we have drafted new contracts.”
Iran was the second-biggest producer in Opec until international sanctions were levied against the country in 2012 because of its nuclear programme, Kallanish Energy reports.
Since sanctions eased in January, production recovered to pre-sanctions levels of 3.6 million barrels a day (mbpd) in April, and maintained that level in May, the International Energy Agency (IEA) estimates.
Rights to develop between 10 to 15 oil and natural gas deposits will be offered in a first tender round that could be held during the Iranian month ending July 21, Zanganeh said.
In the Isna interview, Zanganeh reiterated his projection that Iran will produce 4.8 mbpd of crude and 1 mbpd of condensate over the next five years.
The country can profit from oil prices as low as $7 a barrel since its cost of producing crude is so low, Zanganeh said.