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Iran holds oil and gas show to attract investment

Source: Press TV

photo by Faraj Samadi, Islamic Republic News Agency

Iran is holding a four-day international oil and gas show to introduce lucrative development projects amid hopes for the annulment of sanctions on the Islamic Republic. A large number of foreign companies have signed up to attend the 20th International Oil, Gas, Refining and Petrochemical Exhibition in Tehran. The event starts on Wednesday and will run until Saturday.

Pavilions at Tehran's oil show.
photo by Faraj Samadi, Islamic Republic News Agency

According to Iran's Ministry of Petroleum, some 1,200 Iranian and 600 foreign companies have registered to showcase their achievements at the exhibition. British, French, German, Italian, Russian and Chinese companies are among participants.

Iranian officials hope that this high-profile oil and gas show would attract investment for the development of the giant offshore South Pars gas field, shared with Qatar, and the hydrocarbon fields located in West Karoun region in southwestern Iran.

Iranian Oil Minister Bijan Namdar Zanganeh speaking at the event
photo by Amin Khosroshahi, ISNA

Iran sits atop the world's 4th largest oil reserves and the second largest gas reserves.

South Pars, divided into 29 development phases, contains 40 trillion cubic meters (tcm) of natural gas. It covers an area of 9,700 square kilometers, 3,700 square kilometers of which are in Iran's territorial waters in the Persian Gulf. The remaining 6,000 square kilometers are situated in Qatar's territorial waters.

The gas field is estimated to contain about eight percent of the world's reserves, and approximately 18 billion barrels of condensate.

photo by Faraj Samadi, Islamic Republic News Agency

Experts from Iran and the P5+1 group of countries - the US, Russia, Germany, France, Britain and China - are currently in New York to try to work out a draft agreement over the Islamic Republic's nuclear program. According to reports, the negotiations are planned to resume in the Austrian capital, Vienna, on May 12.

Iran and the P5+1 group of countries reached mutual understanding on the parameters of a comprehensive agreement over the Islamic Republic's nuclear program in the Swiss city of Lausanne on April 2.

Iran and the six-party group have agreed to finalize a comprehensive deal on the nuclear program by the end of June.

photo by Amin Khosroshahi, ISNA

Meantime, a petroleum ministry committee has been modifying the terms of oil contracts in order to sweeten them for foreign companies. The new model, known as Iran Petroleum Contract (IPC), is replacing buyback deals.

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 (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.

... Payvand News - 05/06/15 ... --

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