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Iran's revised oil and gas development contracts offer more incentives to foreign firms and Turkey's reservations about the deals reflect an initial lack of knowledge, the Iranian oil minister said on Monday.
A Turkish Energy Ministry source said last week Turkey would not sign a natural gas accord with Iran until changes acceptable to global investors were made to so-called "buy-back" deals, which are often criticised by foreign firms. The gas deal was expected to have been signed when President Mahmoud Ahmadinejad visited Turkey earlier in August.
"The Oil Ministry's international agreements have made good progress. The modification of the buy-back contracts provides more incentives for foreign companies to participate in Iranian projects," Oil Minister Gholamhossein Nozari said. He did not give details. "The Turks were not informed about the culture of the buy-back contracts. But with the negotiations that took place there (in Turkey), they were told the price ceiling of the contract is determined after carrying out tenders," he said.

Copyright Reuters, 2008

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