NICOSIA ø Iran has been advancing legislation to attract foreign
investment in the nation's energy sector.
Iran's parliament has been revising its current law to enable greater
foreign participation in crude oil and natural gas projects. Under the
legislation, foreign firms would receive greater benefits and revenues from
their investment by allowing them to develop oil and gas reserves.
Officials said Teheran plans to award a contract to a foreign company by October 2004.
The legislation, part of Iran's new 2005-10 economic development plan,
was meant to develop energy reserves outside the southwestern
region. Under the legislation, the state-owned National Iranian Oil Co.
would ease restrictions on so-called buy-back agreements, Middle East Newsline reported.
So far, companies from India, Malaysia, Spain, and Russia have submitted
bids to develop Iran's North Azadegan, Kushk, and Hosseinieh oil fields
under a buy-back arrangement. Officials said India's ONGC Videsh could
receive a 20 percent stake in Kushk and Hosseinieh fields.