Iran is changing its oil and gas contract to attract $30 billion in new investment

The Iranian government is slowly trying to revive back the country after it had finally able to lift up the sanction that has been limiting the country international economic trade. According to the latest news, the country is currently planning to overhaul its oil contract in an attempt to seek $30 billion in new investment.

BBC News reported that the new terms will allow foreign investors to seek more control over the investment in the oil industry. This includes allowing foreign investors to hold a large stake in long-terms profit.

Currently, Iranian oil industry, which holds the world largest oil reserve works under the buyback model. Through the model, a foreign contractor will help to develop the oil and operated oil field in Iran before giving it back to the government after it starts making a profit.

According to the International Business Times, under the new Iran Petroleum Contract model proposed, foreign investors will be allowed to book petroleum reserves in some cases, however, Iranian government still would not allow them to own oil fields in the country.

Iran's oil minister, Bijan Namdar Zanganeh told Financial Times in an interview that Iran does not claim that it is an "ideal and flawless scheme, but it can address the needs of both National Iranian Oil Co. and international oil companies".

"To continue to play a role [as a major oil supplier], we hope to enjoy working with reputable international oil companies under a win-win situation", he added.

Zanganeh present the new scheme during a conference in Tehran which was attended by many big players in the oil industry. Among the companies present are BP, Shell, and Total.

However, there are no companies from the US are present.

Although the plan seems like a good starting platform in its effort for economy revival, there are still lots of areas need to be improved by Iranian government especially with the political instability and civil war going on in the country and its neighbor.

This as some representatives from the oil company present during the conference told reporters that most companies are still unsure on how the bank will react towards having a business with Iran. One representative told reporters that "Banks have openly told us that they will be the last to enter Iran's market".

Iran has been lifted off from its years of sanction by the United States in July this year after the country agrees to follow the new nuclear deal agreement. Through the latest agreement, Iran will cooperate with other six world power in the nuclear field.