Last checked at 
* London contracts conference was due on Feb 22-24
* Internal clashes over the oil contracts, sources say
* Hardliners oppose contracts, push to have a bigger say
* Iran parliamentary elections on Feb 26
By Parisa Hafezi and Rania El Gamal
ANKARA/DUBAI, Feb 11 (Reuters) - Iran's cancellation of aconference when it had been due to unveil investment contractsto international oil firms signals that political feuding isdisrupting plans to revive its energy sector.
Tehran blamed snags in obtaining British visas for Iraniandelegates to the long-delayed conference, which had beenscheduled to be held in London on Feb 22-24.
However, foreign oil executives say factionalised politicsin Iran, where elections will be held later this month, appearedto explain the delay as the country seeks major investmentfollowing the lifting of international sanctions last month.
Iran's new oil and gas contracts are a cornerstone of itsplans to raise crude production to pre-sanctions levels of fourmillion barrels per day (bpd), and the OPEC member desperatelyneeds $200 billion in foreign money to reach the goal.
The sanctions imposed in 2012 over Iran's nuclear programmehave lost it billions. Tehran now wants foreign firms to reviveits giant but ageing oilfields and develop new oil and gasprojects through joint ventures with Iranian partners.
The conference had been postponed five times due to thesanctions. However, this time domestic infighting over thestructure of the oil and gas investments contracts seems to haveprevented any announcement of the commercial terms.
"There are big internal clashes on the new contracts," saida senior foreign oil executive. "The Iranians did not present uswith a final contract until now, nothing was finally approved."
The Iran Petroleum Contracts (IPCs) covering about 52projects will have flexible terms that take into account oilprice fluctuations and investment risks, a senior Iranian oilofficial told Reuters in November.
BP, France's Total, Italy's Eni and Russia's Lukoil were among 135 firms that attended a Tehran conference in November to hear about the IPCs.
But executives expecting to see the model of the contractwere offered only data on the fields up for investment and somegeneral presentations about what the new deals might look like.
"It was clear that this conference was only for a domesticaudience. I do not think they even approved the contracts yet,"said another foreign oil executive who attended the Novemberconference.
HARDLINE OPPOSITION
Hardline rivals of pragmatist President Hassan Rouhani havestrongly opposed the new contracts, saying they contradict theconstitution which says Iranian natural resource reserves cannotbe owned by foreigners. The hardliners also criticised a nucleardeal reached in 2015 that led to lifting of sanctions.
Trying to fend off criticism, Oil Minister Bijan Zangenehrejected "illogical" calls for banning participation of foreignenergy firms, insisting that the new contract models are nottreasonable, Shana news agency reported on Tuesday.
Hardliners want a bigger say in the contract regime, underwhich the oil ministry will assign certain Iranian companies tobecome partners of the foreign firms, industry sources say.
One Iranian oil businessman foresaw more problems forZangeneh and the National Iranian Oil Company (NIOC) followingthe elections on Feb. 26.
"The situation could be more difficult for NIOC and the oilminister for negotiations with the foreign companies after theparliamentary elections, because there is a lot of pressure fromthe hardliners," said an Iranian oil businessman.
"The hardliners don't want to be sidelined from thedecision-making in the oil sector. They want to have a share inthe discussions."
POLITICAL OPPOSITION
Easing economic sanctions and pulling Iran's economy out ofits current sorry state could help Rouhani's backers in theelections to parliament and the Assembly of Experts, a body withnominal power over Supreme Leader Ayatollah Ali Khamenei.
"The government and especially the oil ministry have donetheir utmost to finalise the contracts before the elections," asenior Iranian official told Reuters. "We need to regain ourposition in the market and therefore Iran needs to offercontracts that are better than other oil producing countries."
Khamenei and his hardline allies will not allow Rouhani togain too much popularity, particularly before the elections,another Iranian official said.
"People are tired and have high expectations. The governmentis trying to bind up wounds created by sanctions. Petrodollarsare much needed and therefore the new oil contracts wereprepared," the official, involved in the process said.
"The committee for preparing the contracts finished itswork. The contracts need some minor touches and the finalapprovals. But unfortunately political infightingis overshadowing the issue."
Analysts say Rouhani's political allies could benefit froman economic dividend.
"The news about attracting foreign investors will give hopeto Iranians, to voters, who will reward moderate candidates atthe ballot box. And this is something that hardliners are waryof," said political analyst Hamid Farahvashian.
Farahvashian noted they criticised Rouhani's announcement ofdeals worth billions of dollars last month on a trip to Italyand France. "The same applies for the oil contracts."
NIOC's Deputy head Ali Kardor has said foreign oil companieswill still be invited in May to bid for the new deals.
"The conference had been repeatedly postponed. It is a clearsign of political disagreement inside the establishment," said asenior Western diplomat in Tehran. "Hardliners know the economyis one of the main issues for people. They would not let Rouhaniand his allies become more popular ahead of the elections."
Hardline students gathered last week in front of the oilministry to protest against the terms of the contracts.
"These are all politically-motivated protests. Zanganeh is aseasoned politician and a technical person," said the firstIranian official. "He loves his country and more than anyoneelse believes in nationalisation of oil in Iran. He has alwaysprotected Iran's interests." (Editing by David Stamp)
