7.500
%
Negative
105
mm boe
50
%
Iran remains a difficult place to operate, not least because of US sanctions, which is not made any easier by the paucity within in the Ministry of Hydrocarbons and ongoing sanctions.
June 27, 2021
Middle East
mm bbl
bcf
Middle East, bordering the Gulf of Oman, the Persian Gulf, and the Caspian Sea, between Iraq and Pakistan.
KSA/KSC
The upstream fiscal regime currently applied in Iran is a service-type contract, referred to as an Iran Petroleum Contract (IPC) which replaces the former buyback contract. After the international sanctions relating to Iran relaxed in 2016, Iran is expecting to attract international investments in its petroleum sector and is developing a new contractual framework under which international investors will be able to participate in oil and gas projects. Final terms of the new framework are not yet available.
The UN Security Council has passed a number of resolutions calling for Iran to suspend its uranium enrichment and reprocessing activities and comply with its IAEA obligations and responsibilities, and in July 2015 Iran and the five permanent members, plus Germany (P5+1) signed the Joint Comprehensive Plan of Action (JCPOA) under which Iran agreed to restrictions on its nuclear program in exchange for sanctions relief. The recent election of Raisi signals a hardening of the Iranian stance towards the UN resolutions and the West in general, which could lead to further deterioration in the investment climate.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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