Deputy Head of National Iranian Oil Company (NIOC) for Development and Engineering Affairs, Gholam-Reza Manouchehri, says once the new oil contracts are implemented, non-governmental oil companies will be formed.
Manouchehri made the remarks in a meeting with the upstream oil and gas companies.
He recalled Mina tragedy and said Saudis and their allies are hostile to Iran in various sectors, including oil. "So, we should concentrate all our power to get strengthened in competition in the field."
He focused on the NIOC mechanisms in commissioning upstream oil and gas projects, and said a comprehensive definition based on the value chain of production and life span of the field are among the policies.
He noted that without master plans and without taking details into account, the works will not be fruitful.
He said contracts should be attractive enough to win cooperation of the private sector. "The direct investment and partnership can be good choices for projects to establish refineries and petrochemical facilities; so, the BOT, BOO and the like contracts should find their place in oil industry."
Commenting more on the new oil contracts, Manouchehri said the new model of oil contracts are the developed model of the buy-back contracts. "The main distinction between the two is the type, financial scheme and quality of capital return which the new contracts give more importance to the volume and time period and the contractor is committed to voluminous production from the reserves."
He then referred to abundant opportunities of investment available to the oil industry and said countries have concentrated major portion of their time and energy on methods of enhancing recovery. Development of joint fields and increasing coefficient of recovery in fields are among priorities of the NIOC today to win capital, he added.
Oil economic growth is targeted to stand at 9.2 percent by end of the 6th plan, he announced.