Validation of IPC oil contracts according to the Constitution of the Islamic Republic of Iran

Document Type : Original Article

Authors

1 Department of Public Law, Qom Branch, Islamic Azad University, Qom, Iran

2 Hossein Javan Arasteh, Associate Professor, Department Of Public Law, Qom University And Research Institute, Qom, Iran.

3 Assistant Professor of Public Law,Imam Baqer University,Tehran,Iran

10.30510/psi.2022.353861.3789

Abstract

The purpose of the research is to validate IPC oil contracts according to the Constitution of the Islamic Republic of Iran. In general, companies investing in oil and gas are looking for investments in countries that provide the least amount of conflicts and the most financial added value. The production participation contract in Iran's oil industry has not yet achieved its real status due to legal obstacles. Critics consider some conditions and points to be the reason for the non-compliance of this contractual method with the content of some principles of the constitution and claim that this contractual method causes foreigners to dominate the country's oil and gas resources.Another criticism of the critics is the conflict with principles 44 and 45 of the Constitution. Also, the contract model conflicts with principles 77, 152 and 153 of the Constitution. The findings of this article show that the general conditions of the new model of oil contracts do not conflict with the principles and provisions contained in the constitution, so there is no restriction or prohibition in using the new contracts in terms of conflict with the principles of the constitution. The constitution and the current laws of the country consider the use of other methods of oil contracts with the characteristics of participation in production to be okay, provided that conditions are met. Revision of contract patterns with the aim of creating attractiveness in these contracts is one of the results of this research.

Keywords

Political Sociology of Iran
Volume 5, Issue 11
January 2023
Pages 6779-6795

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