حسین دربویی

Iran’s latest risk service contract, known as the Iran Petroleum Contract (IPC), has been introduced to the international upstream market with the aim of attracting foreign investment in the country’s oil and gas sector. Several terms and conditions distinguish the IPC from the previous Iranian upstream oil and gas contract, the buyback contract. The objective of this investigation is to examine the legal implications of signing contracts in Iran, as well as the contractual terms and conditions of a signed contract in the Cheshmeh Khosh field. This study offers valuable insights into the potential hazards of the IPCs from the perspective of the National Iranian Oil Company (NIOC) by providing realistic information about the IPC and utilizing qualitative methods such as library and documentary research. Moreover, it is designed to assist the NIOC in effectively responding to and monitoring these risks, thereby promoting investment in the development of Iran’s oil and gas initiatives and protecting the national interest of Iran.

It is imperative to acknowledge the ongoing significance of oil and gas in the global economy, despite the global initiative to transition to renewable energy sources such as wind, solar, and geothermal power, which are more environmentally friendly and cost-effective. Following the lifting of sanctions by the United Nations and the European Union, Iran is actively pursuing capital, funding, advanced technologies, and expertise from both domestic and international sources to develop their oil and gas fields. The buyback upstream oil and gas contract, which is implemented in Iran, is an unattractive contract for contractors due to its substantial risks. Analyzing the primary risky events associated with buy back contracts is the primary objective of this study, as it has rendered this contract unappealing to contractors. In order to identify and monitor all contractual and non-contractual risks associated with buy back contracts, a combination of qualitative and quantitative methodologies is implemented. The main objective of the study is to offer investors valuable insights into the potential risks associated with upstream oil and gas buy back contracts and to aid the National Iranian Oil Company (NIOC) in effectively responding to and monitoring these risks.