Iran's energy sector review

The consequences and hidden aspects of hard-line official management, extremist slogans, dismissal of hundreds of professionals and dominating Iran's  macroeconomics    spheres by Iran's Revolutionary Guard Corps (IRGC) - this is the real of face of Iran's economy that is being unveiled more and more, each day. While Iran earned $578 billion of petrodollars during 8 years longed Mahmoud Ahmadinejad presidency, it equals to a half of Iran's total oil incomes for the last 103 years. Iranian Parliament Research Center released a report, which says Iran's economy contracted 3 percent during the last Iranian year which ended on March 2013, and it is estimated to contract 1.3 percent more during the current Iranian solar year. According to the report, an average economic growth during last 8 years is 3.52 percent, while Statistical Centre of Iran said earlier that Iran's economy contracted by 5.4 percent during last solar year. Average economy growth Oil i...

Iran's Oil Miister Bijan Namdar Zanganeh has issued an order to revise types of the ministry's oil contracts. The changes aim at "making oil contracts more attractive for foreign companies". Probably, Iran will prefer to sign "Build-Operate-Transfer" (BOT), "Production sharing agreements" (PSA), and "Buyback" contracts. Build-operate-transfer (BOT) is a form of project financing, wherein a private entity receives a concession from the public sector to finance, design, construct, and operate a facility stated in the concession contract. The company then is allowed to operate the project in order to to recover its investment, operating and maintenance expenses in the project. When the contract expires the company will transfer the project competly to the government. Production sharing agreements (PSA) can be the most interesting kind of contract for foreign investors. Under the agreement, the investor company and the government will ...