The amendments were on the proposal of the Ministry of Petroleum.
President Hassan Rouhani chaired the session.
The cabinet also approved the 6th Five-Year Plan rules.
Earlier in August, President Hassan Rouhani’s cabinet approved an amended draft of the new model for oil and gas contracts.
The new amendments were endorsed after Leader of the Islamic Revolution Ayatollah Seyed Ali Khamenei stressed last month that no new oil and gas contracts for international companies would be awarded without necessary reforms.
The new oil and investment contract for international firms, known as the Iran Petroleum Contract (IPC), will replace Iran’s buyback oil deals. Under a buyback deal, the host government agrees to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.
Iran worked on the oil contract model for two years. The country hopes to draw as much as $50 billion a year from major oil companies such as Italy’s Eni SpA and France’s Total to develop its oil and gas fields.
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