It’s not clear what Iran’s “new method” to be applied to 15 upcoming bids will be, but it could involve revising the unpopular buyback contracts. Companies investing in Iran get a share of oil or gas production over a negotiated timeframe, but the terms often are not generous enough. Iran could offer more attractive payments as it fights sanctions that are scaring off investors.

Helge Lund chief executive of
Norway’s StatoilHydro.

“The Islamic Republic of Iran will henceforth present its oil and gas projects using a new method to domestic and international investors,” said Seifollah Jashnsaz, managing director of the National Iranian Oil Company. “We will prepare project packages….Each one of these packages is a major project and there are more than 15, so that we can attract foreign partners and new financial resources. We received a good reception in this respect from both European and Asian companies.”

“We are interested now to go for the expansion and extension of exporting gas to Europe through pipelines, not through LNG,” said Akbar Torkan, Iran’s deputy oil minister for planning. Instead Iran wants to build the planned “Persian pipeline” that would carry gas to Europe. “We think that for this investment, there will be no political problems, and because investment will be out of Iran and there is no political embargo outside of Iran, then they won’t have a problem constructing it,” Torkan said.