Iranian Cabinet Adopts New Oil-Contract Model To Woo Foreign Investors

Iran's government has approved a new oil contract model designed to attract foreign investors in its energy industry following the easing of sanctions in January.

The contract model was approved at a cabinet meeting on August 3, local media reported.

The Oil Ministry is to review each contract to be signed by potential new investors, including details on price and duration.

The document reportedly needs to be reviewed by parliament for final endorsement.

Big oil companies, mostly from Europe, have expressed interest in developing Iran's oil and natural-gas fields.

Oil Minister Bijan Namdar Zanganeh was quoted as saying priority will be given to boosting output at jointly owned oil and gas fields.

Tehran hopes international companies will invest as much as $50 billion a year and bring technology.

The OPEC member seeks to reach an eight-year high for daily output of 4 million barrels by the end of the year and regain market share it lost due to the sanctions over its nuclear program.

Based on reporting by Bloomberg and Tasnim