TEHRAN, Iran — Dispute remains ongoing over whether parliamentary approval is required for the Iran Petroleum Contract (IPC), a new oil and gas contract model rolled out by the government for upstream projects. Conservative lawmakers want to make further changes to the strategic contract model, arguing that the version approved Aug. 3 by President Hassan Rouhani's Cabinet includes articles that go against Iran's national interest. The IPC is the framework for about 50 upstream oil and gas contracts expected to be signed with foreign investors in coming months

The draft contract, which is aimed at attracting $185 billion in foreign investment in oil and gas production and refining, was first presented to energy investors for feedback last November in Tehran. Since then, the Petroleum Ministry has made 150 changes to it in an attempt to assuage domestic critics. Nevertheless, immediately after the Cabinet’s approval of the IPC, the ultraconservative newspaper Kayhan published an editorial arguing that the amendments only added to the contract’s “disadvantages.” In a separate story published in the same issue, Kayhan implied that both the Joint Comprehensive Plan of Action and the IPC are bad deals that will harm the Iranian economy, thus threatening the national interest. 

The conservative news website Alef reported Aug. 14 that a group of 14 lawmakers had sent a letter to Speaker Ali Larijani asking him to put a series of questions to Petroleum Minister Bijan Namdar Zangeneh, a staunch and outspoken supporter of the IPC. The questions mainly focused on, among other things, the need to use local contractors in the production process and the long-term nature, about 20 years, of the contract model's validity, which right-wing parliamentarians believe will weaken Iran’s sovereignty over its oil reserves. Conservatives argue that local contractors will be denied upstream projects as a result of having to compete against multinational giants, and they claim a prolonged presence by foreigners could pave the way for their corralling resources.

Despite calls for parliament’s involvement, the Guardian Council, the body charged with ensuring that approved legislation is compatible with the constitution and Sharia, announced Aug. 20 that it does not have the competence to oversee the Cabinet’s decision. Meanwhile, Larijani has voiced support for the Rouhani administration’s position, dismissing calls for parliament to have a legal say over the IPC.