In the post-nuclear deal scenario, Iran has
reformulated the terms of the oil contract
model, called the Iran Petroleum Contract
(IPC), to attract international investments
and technology in field development. In
addition, it has ramped up production and
competitively priced its oil to Asia and Europe
so as to recapture the market share lost during
the sanctions period. Any further enhancement
of production capacity, however, requires
expansion of green fields and resuscitation
of brown fields under the IPC. The success of
this effort will depend upon Iran’s domestic
political stability as much as the international
environment, where sanctions are held in
abeyance and oil prices continue to rise to a
level that unlocks the investment capital of the
big oil companies. Nonetheless, in a scenario of
increasing global commitment to adopt green
energy, whether oil companies would still
want to make long-term investments in large
hydrocarbon projects in general, remains an
open question.