Challenges based on the principles governing upstream oil and gas contracts with an emphasis on so-called IPC contracts

Document Type : Original Article

Authors

1 PhD Student in Private Law, Islamic Azad University, Central Tehran Branch, Tehran. Iran

2 Professor, Department of Private Law, Faculty of Law, Shahid Beheshti University, Tehran. Iran. (Responsible author)

3 Assistant Professor, Department of Private Law, Faculty of Humanities, Islamic Azad University, Damavand Branch

4 Assistant Professor, Department of Private Law, Imam Sadegh University, Tehran. Iran.

Abstract

Oil contracts are a means to develop relations with the industrial world. These contracts cover all oil operations, from exploration and drilling to development, exploitation and overharvesting. In fact, IPC is the name of the model that the government has designed and presented with the aim of attracting foreign investment and international oil companies in the development of the country's oil and gas fields, and it is a risky service contract. The IPC, given the secrecy of some of its provisions, has not provided for a process for consideration in parliament and, as a binding legal instrument, may not guarantee the rights of the nation; Recently, however, the Code of Conduct for Important Oil Contracts obliges the Ministry of Petroleum to comply with Article 77 of its treaties. If the goals in this agreement are achieved, by aligning the interests of the parties, we can activate the country's internal capacities and move in the direction of the oil industry flourishing.

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