News / Energy

Iran invites oil majors to bid for new projects

Sunday, 16 October 2016 2:35 PM [ Last Update: Sunday, 16 October 2016 7:12 PM ]

Iran says it will start to receive bids by international companies for the development of new oil sector projects from Monday, 17 October 2016.

Iran has invited global energy giants to a much-awaited tender for the development of several of its key oil sector projects.

The National Iranian Oil Company (NIOC) in an announcement has called on foreign exploration and production companies to submit the required pre-qualification documents for the tender as of Monday, 17 October 2016.

The NIOC said in its statement published on its website that the proposals should be submitted before 19 November 2016 and that the successful bidders will be announced on 7 December 2016.

It is still not clear which projects will be put on tender. However, there have previously been reports that several promising targets – particularly some that Iran jointly shares with Iraq - are expected to be put up for the grabs.

They could include South Azadegan, Yadavaran, and Yaran.

Chances that some projects in South Pars gas hub would also be tendered out are also high, as indicated by the media.

Officials in Tehran had earlier said that the new projects will be awarded through Iran’s new format of oil sector contracts.

Under the new format, the NIOC will set up joint ventures for crude oil and gas production with international companies which will be paid with a share of the output.

The new format also envisages different stages of exploration, development and production that will be offered to contractors as an integrated package, with the emphasis laid on enhanced and improved recovery.

Based on the old format of Iran’s oil contracts – known as the buybacks - the host government agreed to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.

Press TV’s website can also be accessed at the following alternate addresses:

www.presstv.co.uk