Iran is set to sign major oil and gas deals with foreign companies in the second half of next year, its first such contracts since international sanctions were lifted in January, according to Wood Mackenzie Ltd.
The first oil under the agreements will flow in 2020, Homayoun Falakshahi, a research analyst at the consulting firm, said Tuesday in an interview in London. Iran has worked on the terms of the Iran Petroleum Contract -- known as the IPC -- for the past three years and should finalize them by the end of 2016, he said.
The IPC will allow oil companies to return to Iran after years of sanctions restrained crude and gas production. Tehran needs $100 billion of foreign investment for the industry, according to National Iranian Oil Co. The country is expected to add an extra 500,000 barrels a day by 2025 from projects signed under the new terms, Falakshahi said.See More.