31 July 2016 - 16:28
  • News Code: 266086
New Oil Contract Framework Serving Iranian Firms

TEHRAN, July 31 (Shana) -- Managing Director of Petroleum Engineering and Development Company (PEDEC) Abdolreza Haji Hossein Nejad said development of oil industry needs investments rather than slogans and the newly-developed oil contract model must not be seen as intended to weaken domestic prowess in the sector.

Speaking on new foreign investments in Iran's oil and gas sector, Haji Hossein Nejad said, "Frankly speaking when it comes to the Iran Petroleum Contract, some seek political preferences more than national interests." 

He underlined looting of the country's joint oil and gas reserves by neighbors over the course of the sector's history, saying the new oil contracts model will serve Iranian firms more than before.  

"One shall not revere living in a country with billions of dollars in undergrounds oil and gas reserves with people living in poverty. What matters is turning these reserves to national income." 

He said Iran is dependent on its oil revenues and development of the sector is the first priority for the country.

The PEDEC chief said only the stock market can supply finances for development of the sector but that would be very time-consuming. On the other hand, the administration lacks enough resources to fund petroleum projects and the private sector in the country does not seem to be rich enough to join mega energy projects.

As a result only foreign investments can be used for financing projects in the country, he argued. 

The official further said that under the previous administration $20m was invested on every oil which dropped to $7.5m under the Rouhani Administration. 

News Code 266086

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