TEHRAN – The Majlis regulatory board has verified the new model of oil contracts and there is no problem for it to come into effect, Oil Minister Bijan Namdar Zanganeh said on Monday.

“The new model of contracts has been verified with no problem,” the Fars news agency quoted Zanagneh as saying.

On November 28, 2015, Iran introduced its long-awaited new model of oil contracts, known as the Integrated Petroleum Contract (IPC).  

Ali Kardor, deputy director of investment and financing at the National Iranian Oil Company, said Iran could sign the first development deal within the framework of its new model of oil contracts in March or April. 

The IPC will replace buy-back contracts. It is expected to offer more flexible terms on oil price fluctuations and investment risks to make the sector more financially attractive.