Academic: New Oil Contract Model Helping Capital, Technology Transfer

TEHRAN, Aug 28 (Shana) – Professor of Allameh Tabatabie University Ali Emami Meibodi says based on studies by the PhD students of Allameh Tabatabie University's Oil Contracts Course, the new model of oil contracts will effectively help oil industry with transfer of technology and capital, while safeguarding production.

Talking to Shana, Meibodi said future generations will be critical of current status of production out of the oil and gas joint fields.

"How it will be possible that foreign companies put capital and technology at our disposal, while we would not give them any incentive?" questioned the expert.

He said import of new technology to oil industry will result in man power training.

He added that additionally, implementation of the new model of oil contracts will improve the oil industry.

"Today, regarding progress in the context of contracts and talks, it would not be advisable to sit idle and witness the win-loss contracts once again," he added.

Unfortunately, criticisms are raised against the new model of oil contracts at a time when Iraq's production exceeds four million barrels per day, said the official, adding that major portion of the 12 million barrels Iraq targets to produce is from the reserves it shares with Iran. 

He added that British and American companies are behind development of Iraqi oil fields, trying to produce more oil and gas from the fields the country shares with Iran.

The professor said that unfortunately, due to non-import of new capital and technology, especially in the drilling sector in South Pars gas field, Iran badly lagged behind its rival in the oil and gas sectors in the South Pars in one decade ago.
He said today, Qatar is now producing at least 350,000 bpd oil from the oil layer of the field a day, while Iran's production out of the field is zero.

Meibodi said the studies conducted at Allameh Tabatabaie show that Iran's economic and political authority in the past years lied in regular oil production and export to the world markets. "Should the oil industry production and development continue this way, the Islamic Republic of Iran's authority will be harmed."

"Today, the bargaining power in oil negotiations and related science and conclusion of the oil contracts in Iran have risen compared to the past."

News Code 267869

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