TEHRAN – A bill to amend buyback contracts has been through 100 pro and con arguments at Economic Commission of Majlis and it is to be finalized by the legislative body, Iran Oil Minister Seyyed Kazem Vaziri-Hamaneh announced on Saturday.

Speaking in an interview on the occasion of Iran Government Week (August 24-31, 2006), he commented that the existing or ‘inherent’ problem in buyback deals does not stipulate any guarantee by the contractor to offer maximum production of an oilfield in duration of its useful life, nor does the employer accept ‘sharing’ demanded by a second party in the interval of exploitation.

Moreover, the minister pointed at the rate of capital return in buyback contracts which in general is calculated on the basis of fixed expenses made by the foreign side and added, “The contractor is compensated by equal amount of oil or condensate at current prices.”

The ministry is interested in forging a new form of buyback scheme and the final draft is in the process of completion for further referral to Majlis, the oil minister said in conclusion.