Speaking Tuesday at a specialized session on public-private partnership (PPP) contracts and related regulations during the "Transformation in Investment and Development in Upstream Oil and Gas" event, Mortezaei noted that the World Bank emphasizes delegating some project management responsibilities to the private sector in partnership contracts. Under this model, payments and incentives to private companies are determined based on final performance and product quality during the operational phase. This approach motivates both parties to engage more effectively, as any issues during operation would negatively impact all involved.

He added that the experience of countries with fair judicial systems shows key success factors include securing private-sector revenue from projects, reducing reliance on foreign currency, and establishing repayment and equipment maintenance mechanisms. The World Bank recommends incorporating various payment models in contracts, ranging from government payments and financial facilities to design-and-build agreements.

Mortezaei highlighted the need to leverage private-sector expertise and technology, noting that these long-term contracts expect a stronger technical role from private companies, while the public sector benefits from knowledge and technology transfer.

He mentioned that over 40 investment projects worth more than $7.5 billion have been introduced in a booklet provided to companies. These projects include mechanisms to ensure return on investment and even allow financial model revisions if regulations change.

 Gradual progress in crude oil storage contracts 

Alireza Taqipour, head of upstream contracts at the National Iranian Oil Company’s Development and Engineering Management, said the first post-revolution crude oil storage contract was signed in 2009 for leasing storage tanks in Genaveh. However, a lack of legal frameworks caused delays until recent regulatory improvements created better conditions for investment.

Referring to recent projects, including oil storage initiatives in Qeshm, Azadegan, and Asaluyeh, he noted these contracts mark key steps in operationalizing, transferring, and renovating oil facilities. Some are under construction, with more in development.

Two contracts are currently advancing, with secured investments. In some projects, the National Iranian Oil Company is directly involved, using past experience to expand storage infrastructure more effectively.

 Facilitating long-term contracts through PPP 

Mohsen Rohaninejad, head of the public-private partnership (PPP) division at the Planning and Budget Organization, stressed the need for legal frameworks to enable private-sector collaboration with government agencies. The government has planned measures to facilitate long-term contracts and secure financing.

He cited obstacles in private-sector cooperation with government entities, emphasizing the necessity of clear regulations for long-term contracts. Legal frameworks must balance government and private-sector interests, with transparency in tendering processes being a major challenge.

Rohaninejad warned that improper pricing could harm competitiveness and service quality, discouraging investors. Establishing specialized bodies, such as in-house tender commissions, could improve