The Iranian Minister of Petroleum says the country plans to boost its production capacity to nearly 4.7 million barrels a day in the near future, while Iran Petroleum Contract is to be introduced.
During a Monday meeting with members of a German business delegation in Tehran, Bijan Zangeneh said Iran's natural gas output will hit 1,000 mcm/d within the next three years while its crude oil production will reach a targeted 4.7mb/d in "the near future".
He expressed hope that German companies will enter into petroleum projects in Iran once Iran Petroleum Contract is introduced.
"Iran will cooperate with German companies for funding projects in the petrochemical, refining, storage, energy optimization and renewable energies sectors," said Zangeneh.
"We are not merely targeting major German companies in our plans; rather we are also focusing on small and medium companies for completing projects in Iran," said the top Iranian official.
He further underlined Iran's magnificent potentialities in the region, saying that German firms shall not limit their focus on the Iranian market only; besides "they can take advantage of Iran's status in the region to access its market."
Zangeneh said banking and insurance issues must be resolved between Tehran and Berlin as soon as possible for the two countries to enhance their cooperation in different fields.
A delegation of representatives from top German companies and industrial groups arrived in Tehran on Sunday to hold talks with senior Iranian officials in a bid to boost trade between Tehran and Berlin.
Headed by Germany’s Economy Minister Sigmar Gabriel, the delegation arrived in Tehran less than a week after Iran struck a historical deal with world powers-namely Britain, China, France, Russia, the United States and Germany- on Tuesday over its nuclear program which is hoped to lift western sanctions on Tehran.
During the three-day trip, Gabriel, who is also Chancellor Merkel's deputy leader and energy minister, will meet with Iran’s President Hassan Rouhani and several ministers.
In a statement, the German minister had said that the nuclear conclusion had laid the groundwork for “normalizing economic ties with Iran.”
Tehran-Berlin trade relations enjoy a magnificent history but have slowed dramatically since 2012 thanks to the West's sanction on Iran with the aim of curbing Tehran's nuclear program.
Based on the nuclear conclusion, limits will be put on Iran’s nuclear activities in exchange for the removal of sanctions, including all economic and financial bans, against the Islamic Republic.
IPC is expected to replace “buy-back” contracts which, he added, are no longer attractive to foreign companies.
Under a buyback deal, the host government agrees to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.
But under the IPC, National Iranian Oil Company will set up joint ventures for crude oil and gas production with international companies which will be paid with a share of the output.
Foreign companies are expected to rush back to Iran as hopes soar for relief in sanctions imposed on the Islamic Republic over its nuclear program.