Iran: Tehran confronts pitfalls in search for oil investors

Iran is expected to push ahead with its new model of oil contract, despite domestic opposition, but until international oil companies (IOCs) see greater clarity of terms none of the much-needed investment will materialise, despite the attractions of the Islamic Republic’s 158bn bbls of oil and 34 tcm of natural gas reserves (according to BP estimates). Continuing difficulty in rebuilding international banking relations will hobble some activity (see Finance), while the Rouhani administration is also confronted with domestic pressures – reflected in highly personalised attacks on petroleum minister Bijan Namdar Zanganeh – as it tries to finalise terms of the much-delayed new oil contracts to be offered to IOCs.