Oil Ministry Aims to Attract Investment, Streamline Upstream Oil, Gas Contracts

Date: 11 June 2025 - 22:44

News ID: ۱۴۰۵۱۷

TEHRAN – The deputy director of investment at the National Iranian Oil Company (NIOC) Amir Salehi has emphasized that a recent approval by the Economic Council to simplify upstream oil and gas contract procedures will significantly reduce the time between receiving investor proposals and finalizing agreements.
Salehi said the measures reflect the Oil Ministry’s commitment to attracting investment and streamlining economic processes. He noted that contract negotiations, which previously took up to three years, have been expedited through coordination between the Oil Ministry and the Plan and Budget Organization.
Investor complaints about prolonged contract negotiations prompted the two entities to revise procedures, setting specific timelines for each stage to minimize delays.
Salehi explained that the lack of a unified information template between the Oil Ministry and the Planning and Budget Organization had prolonged negotiations and approvals. Under the Economic Council’s directive, a standardized documentation framework has been finalized to shorten the contracting process.
With these reforms, the timeline from proposal submission to contract signing has been significantly reduced. Recent meetings between the Oil Ministry and the Plan and Budget Organization focused on accelerating the review of oil and gas development plans. A checklist of required documents is being finalized to clarify responsibilities and expedite evaluations.
Salehi announced that, with these changes, the review period for development proposals will be shortened to six months—four months for NIOC’s internal processes and two months for Planning and Budget Organization approval. However, he stressed that adherence to timelines requires cooperation from all stakeholders.
He also addressed past delays in gas field development contracts, noting that some projects required Cabinet approval for gas allocation to energy-intensive industries, such as petrochemical plants.
The Economic Council has approved an incentive package to boost upstream oil and gas investment. Key measures include:
- Streamlining contractual processes
- Enhancing investment incentives
- Leveraging financing mechanisms
- Adopting modern economic tools
Under the new framework, the entire contracting process—from proposal submission to signing—must be completed within six months, including a maximum of four months for NIOC negotiations and two months for Plan and Budget Organization review.