Iran's energy sector review

The managing director of National Petrochemical Co. Abbas Shari Moghaddam says that Iran has started negotiations with some companies from France, Germany, Denmark, Switzerland, Japan and South Korea in the petrochemical industry, but hasn't signed any agreement, yet. According to Mehr News Agency's report published on Feb.12, he criticized the American official's warnings about foreign companies' cooperation with Iran despite lifting the petrochemical-related sanctions. Shari Moghaddam said that the U.S.'s position caused foreigners confusion as whether to be involved in the country's projects or not. Iran holds above 153 billion barrels of oil, alongside 33.6 billion cubic meters of gas reserves but continues raw-selling its national resources. For instance, according to the Custom Administration's latest monthly report, Iran exported about $9 billion worth petrochemical products during the last 10 months, sharing 26 percent of non-oil exports, in...

Iran says the parliament has approved signing production-sharing agreement (PSA) in joint oil and gas fields as well as the off-shore fields in deep waters. Mehdi Hosseini, director of the Iranian Oil Ministry-appointed committee tasked with revising oil contracts said PAS contracts would be attractive for foreign companies, alongside the other new designed contracts which Iran would unveil in June. Iran has 28 joint oil and gas fields, where neighbors extract nine times more from these fields. Iran has no experience in PSA contracts due to legal restrictions that don't allow any company to share in the national oil and gas reserves. Rewards of PSA According to PSA, a contractor accepts all risks of a project, puts up the money, providing the equipment for exploration and development of a field in order to obtain a percentage of the field's reserves. PSA also raises the contractor's motivation and commitment to increase the recovery rate of fields as an owner o...