Production-Sharing Contracts Could Help Renew Iran Oil Market
Iran is changing its oil contracts to try to overcome sanctions and compete with Iraq.
For the first time since the Islamic Revolution in 1979, Iran is offering production-sharing contracts (PSCs) for investment in its upstream energy field, which involves exploration and production stage of the hydrocarbons industry.
The contracts, which allow oil companies to more quickly recoup their investment expenses than the buy-back arrangements Iran had previously favored, could help the Islamic Republic attract desperately needed new cash and expertise and alleviate the impact of draconian sanctions and competition from its neighbor, Iraq.
