Cabinet ministers in Iranian President Hassan Rouhani's administration said they endorsed the terms of new oil contracts for a post-sanctions era.

Mehdi Husseini, charged by the government with drafting a new contract model, told the Iranian Oil Ministry's website SHANA the Cabinet has fully signed off on the new terms.

Under the terms of the deal, the National Iranian Oil Company will establish joint ventures with its foreign counterparts, who will be paid with a share of any production. Previous terms gave energy companies a predetermined price for production volumes.

Tehran hosts an international energy conference in late November to present the terms to potential investors.

"A wide welcome is expected for the Tehran conference," Husseini said.

Ali Kardor, deputy managing director at the National Iranian Oil Co., said the energy sector needs at least $250 billion in new investments. While crude oil prices are forcing most energy companies to cut back on spending, Kardor said, "Iran has the cheapest oil produced in the world."

The Organization of Petroleum Exporting Countries, of which Iran is a member, said the Islamic republic is expected to start up dozens of oil and gas projects, worth an estimated $185 billion, by the end of the year. Sanctions, easing as a result of a July nuclear agreement with world powers, have nevertheless starved Iran's energy sector of much-needed new investments.

The International Monetary Fund said Iran's economy is facing "severe structural challenges," with postponed investment decisions dragging on growth.

Iran said it could add another 500,000 barrels of oil per day to the international market after sanctions are lifted.

Iran signs deal doubling gas exports to Iraq
Tehran (AFP) Nov 11, 2015 - Iran will double gas exports to neighbouring ally Iraq from 2017 under a contract signed on Wednesday.

The deal, to send 20 to 35 million cubic metres of gas per day to the southern Iraqi city of Basra, follows a first major contract between the countries in 2013 to export gas to the Iraqi capital Baghdad.

"The gas export will begin in a year and a half with new pipelines and facilities," Iran's Deputy Oil Minister Hamid Reza Araghi said, before signing the contract with Iraq's deputy energy minister.

The contract is for six years, he added, without mentioning its total value.

"The pricing will be similar to that of the Baghdad contract," Araghi said.

Local media had earlier reported that the Baghdad contract, to export 25 million cubic metres of gas a day, was worth $3.7 billion (3.4 billion euros) a year.

Iran sits on the world's second largest natural gas reserves and produces some 600 million cubic metres a day, almost all of which is consumed domestically due to lack of exports means.

Shiite powerhouse Iran and Iraq, which fought a war in the 1980s, have become close allies since the 2003 fall of Saddam Hussein and the rise to power of a Shiite-dominated government in Baghdad.