Iran unveils new contract terms for foreign investors

Iran is looking to generate $25bn-worth of new investment following a change in the way it offers contracts to foreign energy companies.

Under the new contacts, foreign investors will be allowed to take a larger stake in long-term projects, oil minister Bijan Zanganeh told attendees of a two-day conference in Tehran.

"The contract models introduced today are not perfect or ideal, but an effective and responsive model for both sides," he admitted.

However, he hoped it would be a "win-win situation" and "an effective and responsive model for both sides" that would enable the country to continue to play a role as a major oil supplier.

He added the Iran has "no objection to or problem with the participation of US companies".

The initial contracts will be for four years, with the option to extend by a further two years.

"Like any other human creation [the contract] may need amendment and development," Zanganeh added.

Companies that attended the conference included BP, Shell, Repsol and Total.