TEHRAN, Aug 18 (Shana) � Managing Director of National Iranian South Oil Company Bijan Alipour says his companies does not oppose new model of oil contracts.

Talking to Shana, Alipour said implementation of such contracts so early will result in increase in the crude production capacity.

�We hope that new model of oil contracts will soon be implemented so as not to waste time further.�

Earlier in August, President Hassan Rouhani�s cabinet approved an amended draft of the new model for oil and gas contracts.

The new amendments were endorsed after Leader of the Islamic Revolution Ayatollah Seyed Ali Khamenei stressed last month that no new oil and gas contracts for international companies would be awarded without necessary reforms.

The new oil and investment contract for international firms, known as the Iran Petroleum Contract (IPC), will replace Iran�s buyback oil deals. Under a buyback deal, the host government agrees to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.

Iran worked on the oil contract model for two years. The country hopes to draw as much as $50 billion a year from major oil companies such as Italy�s Eni SpA and France�s Total to develop its oil and gas fields.

By SHANA