DUBAI The National Iranian Oil Company (NIOC) on Saturday formally invited foreign companies to bid for a string of buy-back oil and gas projects worth billions of dollars which were announced last month. It is Iran's largest foreign oil and gas tender since the 1979 Islamic Revolution. National Iranian Oil Co. (NIOC)...hereby invites tenders for implementation of the petroleum projects specified in the general budget act of the IRI (Islamic Republic of Iran) on the basis of a buy-back mechanism, a fax from NIOC said.

International oil companies can collect the tender documents at NIOC's international affairs division in Tehran from September 1-15, it said. The applicants shall duly fill in and submit the questionnaire by not later than August 20, 1998, NIOC said. In early July, Iran unveiled an unprecedented array of energy projects to Western and Asian investors, naming 43 exploration or development ventures worth over $5 billion in oil and gas.

Iran is luring foreign investment to procure Western technology to help in development, exploration and enhanced oil recovery projects to stem a slide in production from ageing fields. It says more than 20 billion barrels of oil could be found in addition to Iran's existing hoard of more than 90 billion barrels, the world fifth largest reserves. U.S. companies have been showing greater interest in Iran over the past six months despite being subject to a 1995 ban on U.S. trade and investment in Iran. European companies are especially eager to exploit a decision in June by the United States to waive sanctions against a $2 billion project in Iran led by France's Total to develop stages two and three of the big South Pars Gas and condensate field.

Under the buy-back system the foreign participants are repaid through production. (Reuter)