Iran is expected to approve a new model for oil contracts on Wednesday, paving the way for billions of dollars of foreign investment to help rebuild its energy industry.
“We are awaiting government approval due to be out on Wednesday,” Oil Minister Bijan Zanganeh said at a ceremony in Tehran on Monday. “Our priorities will be jointly owned oil and gas fields, as well as those in which we are after improved oil recovery.”
Iran has been working on the oil contract model for the past two years. The Persian Gulf 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 SA to develop its oil and gas fields. Most of the companies that have expressed interest are European, Zanganeh said.