IPC as Security for Financial Facilities

On May 7, 2019, the Central Bank of Iran circulated a directive instructing Iranian banks to admit the “upstream development and production operations service contracts” for oil and gas fields, also known as IPC, concluded between National Iranian Oil Company and qualified local E&P companies and the long term sale and purchase agreement for the proceeds arising out of such contracts as security for loans and financial facilities granted to qualified local E&P companies. The mandate in general was stipulated under the latest Iranian Budget Act...

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