Iran Plans to Offer Better Oil Exploration Terms Than Iraq
By Golnar Motevalli, Ladane Nasseri and Anthony DiPaola
The fifth-largest Organization of Petroleum Exporting Countries member is discussing limits to its nuclear program to remove Western sanctions against its financial and energy businesses. Iran is developing new hydrocarbon contracts that are “in line” with international practice and law and will offer more flexible terms than those Iraq uses, said Mehdi Hosseini, who leads the oil ministry’s committee on the accords.
“They’ll need to reward partners with incentives for raising production or cutting costs,” said Robin Mills, who worked for Royal Dutch Shell Plc (RDSA) on some of the last Western contracts secured in Iran a decade ago. “Iran’s mature and smaller fields pose more risks for companies developing them, so Iran would have to offer better remuneration,” Mills, head of consulting at Manaar Energy Consulting and Project Management in Dubai, said by phone today.
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