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Iran needs $200 billion to develop oil industry

Staff writer |
Iranian Oil Minister Bijan Namdar Zanganeh said that $200 billion investment is required to develop the country’s oil industry.

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“Internal resources are not enough to meet such need, therefore we should attract foreign investment”, Zanganeh said in a press conference.

IPC (the Integrated Petroleum Contract), the new model of Iran’s oil contracts, has been drawn up to materialize this objective, the minister noted.

In November 2015, Iran introduced IPC, which will replace buy-back contracts. It is expected to offer more flexible terms on oil price fluctuations and investment risks to make the sector more financially attractive.

The new contracts, which include those in the upstream exploration and development sectors, are expected to attract more than $40 billion in foreign investment.

According to Zanganeh, of the $200 billion investment needed for oil industry, $130 billion is needed in the upstream sector and $70 billion in the downstream sector, including petrochemical industries.

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