Iran May Postpone Launch of New Energy Contracts by Three Months

MOSCOW (Sputnik) — Tehran may delay the launch of its new oil and gas agreements by three months, until December, due to the lack of time left ahead of the expected lifting of anti-Iran sanctions, financial news website MarketWatch reported, citing the head of the government-appointed Oil Contracts Revision Committee, Mehdi Hosseini.

The West imposed sanctions on Iran in 2011-2012, banning the export of Iranian oil to the European Union and some parts of Asia. The sanctions are expected to be lifted after a comprehensive deal between Tehran and international mediators, ensuring the peaceful nature of Iran's nuclear program, is signed.

In early June, Iranian Oil Minister Bijan Namdar Zanganeh said that the republic plans to present new oil contracts to international companies by September.

According to Hosseini, as the lifting of anti-Tehran sanction is expected to take place after the June 30 deadline to reach a deal on Iran's nuclear program, there would be not enough time to market new energy contracts in September.

"For us, [the date of the presentation] does not make a difference, the issue is so important," Hosseini said as cited by MarketWatch.

The contracts are close to completion, he added, stressing that international oil companies have already received details of some of the agreements.

The Islamic Republic expects to bring companies to the country’s market because the country can offer low introductory production costs, approximately $10 per oil barrel, which is significantly below the current $50 per barrel price in the United States, according to Hosseini.

The new deals stipulate that oil prices will be regulated in accordance with the economic situation, with the Iranian National Iranian Oil Company making the conclusive decision.

Iran will stimulate oil company interest by offering additional revenue percentage for increased production, joint ventures, and technology sharing.