Iran, OPEC’s Big Winner, Agrees on Landmark Oil Contract
- NIOC to join local companies in $2.2 billion oil project
- Country seen a winner after missing ‘big party’ on sanctions
Iran Caps OPEC Success With Landmark Oil Contract
Iran, fresh from an OPEC meeting where it won significant concessions from regional rival Saudi Arabia, accelerated the rejuvenation of its sanctions-ravaged energy industry on Tuesday when the state producer signed a new-model oil investment contract.
National Iranian Oil Co. agreed to the framework of a $2.2 billion deal with Persia Oil & Gas Industry Development Co. to boost output at three fields along the country’s western border with Iraq, Oil Minister Bijan Namdar Zanganeh said during a ceremony at the ministry. A second contract will be signed with a local company on Wednesday, Tasnim news agency reported, without giving details. Zanganeh has said the new type of contract, designed to better reward investment in crude and natural gas production, is crucial to increasing the country’s long-term export potential.