Category: Blog
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Quantitative Terms in Gas Sale Agreements (GSA/GSPA)
Gas Sale Agreements (GSAs) are among the clearest contractual arrangements in which the concept of quid pro quo is manifested in its true sense.Naturally, every sale-and-purchase agreement involves two parties — the buyer and the seller — and quid pro quo means that for every clause securing the buyer’s interests, there is a corresponding clause…
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Guideline for Selecting Public–Private Partnership Models 2023
As we know, there are numerous contractual models for Public–Private Partnerships (PPP). In 2023, the Technical and Executive System for Consultants and Contractors of the Plan and Budget Organization published Bulletin No. 874 titled “Guideline for Selecting Public–Private Partnership Models.” The absence of such a document had long been felt. In this guideline, various PPP…
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Hydraulic Fracturing, Acid Fracturing, and Acidizing
Three Different Well-Stimulation Operations — in Non-Technical Language These three methods are commonly used to stimulate oil wells and enhance hydrocarbon recovery.Hydraulic fracturing is mainly applied in sandstone reservoirs and shale gas formations to increase permeability and improve production. In contrast, acid fracturing is performed in carbonate reservoirs. Hydraulic FracturingIn hydraulic fracturing, high-pressure pumps inject large volumes…
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Moving Toward a “Unit Rate” Fiscal Regime in Oil and Gas Project
Moving Toward a “ Rate” Fiscal Regime in Oil and Gas Project Project Fiscal Strategies are generally categorized into three contractual frameworks: 🔹 Lump Sum 🔹 Cost-Plus 🔹 Rate (Schedule of Rates) The Rate (Schedule of Rates) model can be effectively applied in projects where a defined set of repetitive and quantifiable tasks occurs frequently.…
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A Look at the New Amendment to “The General Conditions, Structure and Model of Upstream Contracts”– IPC
Silence as Consent? (A Commentary on the Critics of the IPC Model) Oil and gas contracts have always attracted public sensitivity and scrutiny. Several years ago, during the transition from buy-back contracts to the new Iran Petroleum Contract (IPC) framework, significant debate arose across political and technical circles. After the Cabinet issued the decree titled…
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“Nafi al-Sabil” & Iran Oil industry
How Our Interpretation of Nafi al-Sabil Shaped Policy The jurisprudential doctrine of *Nafi al-Sabil (“denial of dominance”) has served as the foundation for several provisions of the Iranian Constitution, including Articles 43 and 44.Among these, Article 44 is particularly significant, as it effectively delineates the boundaries between public-sector and private-sector economic activity—an issue of critical…
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ROT & MOT Models: Contractual Mechanisms to Address Aging State-Owned Industrial Assets
The escalating *maintenance costs in heavy industries—including the oil and gas sector—are widely recognized. As facilities age, these costs inevitably rise. Annual data on corrosion‐related expenses, combined with production shutdowns caused by both planned and unplanned maintenance, clearly demonstrate the need for substantial capital expenditure. Moreover, the 14.5% revenue share allocated to the National Iranian…
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Components and Processes of a Petroleum System
(A Non-Technical Summary) A petroleum system* refers to an active source rock and the accumulation of hydrocarbons that are chemically linked to that source rock. A petroleum system consists of the geological *elements and processes that control the formation, migration, accumulation, and preservation of hydrocarbons. Key Elements of a Petroleum System Source Rock The source…
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Build-Own-Operate or Build-Operate-Own?
BOO Contracts and Examination of a Conflict in Related Laws and Regulations BOO contracts are one of the models of Public–Private Partnerships (PPP), encompassing three concepts: Build, Own, and Operate. The most important and distinctive stage in this type of contract is the ownership stage, whereby the investor becomes the owner of the project and…
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Local Content Policies” – A Double-Edged Sword!
One of the constant concerns of policymakers and statesmen, particularly in oil and gas exporting countries, is the maximization of the economic benefits derived from oil and gas extraction. In response to such concerns, the concept of Local Content first emerged in the North Sea oil sector in the 1970s. Today, this concept serves as…