TEHRAN (TCA) — Iran has said it needs $200 billion in investments to revamp its oil industry, the country’s PressTV news agency reported.
“To develop the joint fields and enhance recovery of oil reservoirs as well as secure development targets, we need investments totaling $200 billion,” Bijan Zangeneh, Iran’s oil minister, told reporters on February 9.
Zangeneh said the upstream sector requires $130 billion in investments while $70 billion needs to be injected into processing facilities and oil refineries.
He said Iran has to provide this investment through foreign resources as the country’s domestic resources are not enough to develop the country’s oil industry.
The Iranian minister further emphasized that Iran will put at least 15 new oil projects on tender starting from 21 March 2016.
Zangeneh emphasized that the priority for awarding the projects will be given to those that are situated on Iran’s shared borders. He also emphasized that the projects that require new technologies to boost their Improved Oil Recovery (IOR) rate will be also prioritized.
Iranian officials have said Iran will ramp up its oil production by 500,000 barrels per day (bpd) within a short time after the removal of international sanctions and raise it to 1 million bpd within six months.
Iran has also revolutionized its oil contracts to make its projects more attractive to investors. The country revealed the new format of its oil contracts which is named Iran Petroleum Contract (IPC) last year. Under the IPC, different stages of exploration, development and production will be offered to contractors as an integrated package, with the emphasis laid on enhanced and improved recovery.
