TEHRAN, July 10 (Shana) – The official in charge of overseeing preparation of new oil contract model said Iran is losing at least 4 billion dollars every month by postponing development of upstream projects in its petroleum industry.

Addressing the International Conference of Optimizing Upstream Oil and Gas Contracts on Sunday, Mehdi Hosseini said the amount of the losses can even double when considering the indirect expenses incurred on the country.

"Reduction of Iran's credibility in implementation of deals, deferment of the development of other economic sectors and generation of jobs are some of the side effects of not implementing the new oil contract model," he said.

He said the latest developments in the international oil market requires division of new contract models which are more attractive to foreign investors.
Iran is devising a new contract model to replace buy-back deals for development of its oil and gas deals.

The country has pitched nearly 50 major energy projects to be developed under the new contract model.
Hosseini further said that the new contract model enjoys a firm scientific backbone that has been provided by reviewing oil contracts that are being used in 33 other countries.

Furthermore, 70 PhD theses in Iranian and foreign universities have been considered for devising the new contract model.

By SHANA