Iran petroleum contract (IPC) - a new generation of oil contracts

Objective: to estimate the new generation of contracts (IPC, IOC) in the initial sector of oil industry and to compare them with previos contracts of other types used by the global producers in this sector.Methods: dialectical, comparative, descriptive, abstract-logical, and the method of system ana...

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Main Authors: F. Hadavimoghaddam, M. M. Gortani
Format: Article
Language:English
Published: Tatar Educational Center “Taglimat” Ltd. 2019-12-01
Series:Russian Journal of Economics and Law
Subjects:
Online Access:https://www.rusjel.ru/jour/article/view/108
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author F. Hadavimoghaddam
M. M. Gortani
author_facet F. Hadavimoghaddam
M. M. Gortani
author_sort F. Hadavimoghaddam
collection DOAJ
description Objective: to estimate the new generation of contracts (IPC, IOC) in the initial sector of oil industry and to compare them with previos contracts of other types used by the global producers in this sector.Methods: dialectical, comparative, descriptive, abstract-logical, and the method of system analysis.Results: in Iran of the post-sanctions period, the new model oil contracts (IPC) are becoming increasingly attractive to foreign investors. Under certain conditions, foreign oil company acquire the opportunity to reserve stocks, but foreign companies still cannot own oil deposits. One of the key advantages of the new contracts is the possibility to intensify development, search and optimal exploitation of oil and gas deposits, and to increase the coefficient of oil and gas extraction. The article presents a general characteristics of the new oil contracts, identifies the key spheres of their application. The key problems are systematized, related to the previous buy-back regime, which are either concealed in the new contract model, or information is insufficient for complete comprehension of the supposed risk distribution, such as the issues of buyback, commercialization, management, etc. The main advantages of the new integrated oil contracts are identified, such as: cost reimbursement, more complicated price structure, and transition to the model of a joint venture, as well as the advantages of the new contracts compared to buy-back contracts.Scientific novelty: the article presents a comparative analysis of the new integrated oil contracts in Iran and buyback contracts, and systematizes the key advantages and disadvantages of the new contracts.Practical significance: the research results can be used in scientific and academic activity of universities, as well as by state authorities when elaborating state policy in the sphere of oil production and processing.
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spelling doaj-art-4fdf3f071f584100a0428c3f2ce2204c2025-08-20T03:45:53ZengTatar Educational Center “Taglimat” Ltd.Russian Journal of Economics and Law2782-29232019-12-011341522153610.21202/1993-047X.13.2019.4.1522-1536107Iran petroleum contract (IPC) - a new generation of oil contractsF. Hadavimoghaddam0M. M. Gortani1Russian State University for Oil and Gas named after I. M. GubkinRussian State University for Oil and Gas named after I. M. GubkinObjective: to estimate the new generation of contracts (IPC, IOC) in the initial sector of oil industry and to compare them with previos contracts of other types used by the global producers in this sector.Methods: dialectical, comparative, descriptive, abstract-logical, and the method of system analysis.Results: in Iran of the post-sanctions period, the new model oil contracts (IPC) are becoming increasingly attractive to foreign investors. Under certain conditions, foreign oil company acquire the opportunity to reserve stocks, but foreign companies still cannot own oil deposits. One of the key advantages of the new contracts is the possibility to intensify development, search and optimal exploitation of oil and gas deposits, and to increase the coefficient of oil and gas extraction. The article presents a general characteristics of the new oil contracts, identifies the key spheres of their application. The key problems are systematized, related to the previous buy-back regime, which are either concealed in the new contract model, or information is insufficient for complete comprehension of the supposed risk distribution, such as the issues of buyback, commercialization, management, etc. The main advantages of the new integrated oil contracts are identified, such as: cost reimbursement, more complicated price structure, and transition to the model of a joint venture, as well as the advantages of the new contracts compared to buy-back contracts.Scientific novelty: the article presents a comparative analysis of the new integrated oil contracts in Iran and buyback contracts, and systematizes the key advantages and disadvantages of the new contracts.Practical significance: the research results can be used in scientific and academic activity of universities, as well as by state authorities when elaborating state policy in the sphere of oil production and processing.https://www.rusjel.ru/jour/article/view/108economy and national economy managementiranian oil contractoil and gascapital costsnon-capital costsbuy-back contractsoil operationsforeign investments
spellingShingle F. Hadavimoghaddam
M. M. Gortani
Iran petroleum contract (IPC) - a new generation of oil contracts
Russian Journal of Economics and Law
economy and national economy management
iranian oil contract
oil and gas
capital costs
non-capital costs
buy-back contracts
oil operations
foreign investments
title Iran petroleum contract (IPC) - a new generation of oil contracts
title_full Iran petroleum contract (IPC) - a new generation of oil contracts
title_fullStr Iran petroleum contract (IPC) - a new generation of oil contracts
title_full_unstemmed Iran petroleum contract (IPC) - a new generation of oil contracts
title_short Iran petroleum contract (IPC) - a new generation of oil contracts
title_sort iran petroleum contract ipc a new generation of oil contracts
topic economy and national economy management
iranian oil contract
oil and gas
capital costs
non-capital costs
buy-back contracts
oil operations
foreign investments
url https://www.rusjel.ru/jour/article/view/108
work_keys_str_mv AT fhadavimoghaddam iranpetroleumcontractipcanewgenerationofoilcontracts
AT mmgortani iranpetroleumcontractipcanewgenerationofoilcontracts