|
|
Article: IRAN - The Buy-back Approach.
- Article from:
- APS Review Gas Market Trends
- Article date:
- April 2, 2007
CopyrightCOPYRIGHT 2007 Input Solutions. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
As the Islamic republic's constitution did not allow the granting of concessions or any production sharing agreement (PSA), the government in 1990 worked out a buy-back formula under which foreign firms developing oil or gas fields were to be repaid their cost and given an agreed rate of return from initial production and long-term access to the output. In rounds of offerings made in 1991 for 11 field projects, however, the response was poor because the rate of return was low. Subsequent efforts to attract companies failed. In 1995, the rate of return was raised and the first round of offerings attracted some companies, with Total taking the Sirri fields. In subsequent ...