Category: Blog

  • The Difference Between Cost Stop and Excess Oil in Production Sharing Agreements [PSA/PSC]

    The Difference Between Cost Stop and Excess Oil in Production Sharing Agreements [PSA/PSC]

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    These types of contracts, alongside concession, service, and hybrid agreements, are among the main upstream contractual models commonly used in the oil industry. The original idea was first introduced in Bolivia in the 1950s, but the modern form was developed in Indonesia in the 1960s. In PSC contracts, the capital and operating expenditures incurred by…

  • Natural Gas Storage

    Natural Gas Storage

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    🔹According to 2021 statistics, there are about 693 active natural gas storage reservoirs worldwide, of which Iran owns two — Serajeh and Shourijeh. Gas storage, aimed at energy security and compensating for gas supply–demand imbalances, is a key concern for both gas-producing and gas-consuming countries. 🔹 The legislator, in the Seventh Development Plan, has stipulated…

  • Inconsistencies between Iranian Laws and the Energy Charter Treaty

    Inconsistencies between Iranian Laws and the Energy Charter Treaty

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    Inconsistencies between Iranian Laws and the Energy Charter Treaty are mentioned below: 🔹️Article 11 of the Energy Charter Treaty (Entry of Employees of Foreign Investors) ➡️ Conflicts with Article 82 of the Constitution and Article 3 of the Law on the Maximum Utilization of Domestic Technical, Engineering, Industrial, and Executive Capabilities. 🔹️Article 5 of the…

  • Energy Charter Treaty (ECT)

    Energy Charter Treaty (ECT)

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    One of the few and most important multilateral international treaties in the field of Energy is the Energy Charter Treaty (ECT), which was proposed in 1990 by Ruud Lubbers, who was Prime Minister of Netherlands, based on the idea of fostering East–West cooperation in the energy sector.Today, the Treaty has 54 full members and 44…

  • Territorialization and Its Impact on Common Resources

    Territorialization and Its Impact on Common Resources

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    🔹️The 1982 United Nations Convention on the Law of the Sea (UNCLOS), adopted in Montego Bay, sought to regulate the legal regime of the seas by drawing upon customary legal sources. 🔹️One of the disputes rooted in “shared hydrocarbon resources” occurred in the maritime zone of the Aegean Sea—a case between Greece and Turkey brought…

  • Foreign Investment and the Calvo Clause

    Foreign Investment and the Calvo Clause

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    The reasons for foreign investment from the investor’s perspective can be categorized into three groups: 1. Capital accumulation and the lack of domestic need for the relevant capital in the investor’s home country 2. Disparity in the benefits of investment in the investor’s own country 3. Incentive policies and measures adopted by the host countryHowever,…

  • “UUOA” & “PUA” Agreements in Common Fields

    “UUOA” & “PUA” Agreements in Common Fields

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    There is no upstream document in the oil and gas industry that does not address the necessity of developing joint fields. It is evident that the reason for this entirely logical emphasis lies in the competition we face with neighboring countries in exploiting these resources.Unitization & Unit Operating Agreement (UUOA) contracts are a type of…

  • Green Field vs. Brown Field & Brown Reservoir vs. Green Reservoir in Iran’s Regulation.

    Green Field vs. Brown Field & Brown Reservoir vs. Green Reservoir in Iran’s Regulation.

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    Definitions from the Cabinet of Ministers Resolution on Upstream Petroleum Contracts Framework: 🔹Reservoir: Each of the anticlines, stratigraphic structures, or any type of structural trap containing hydrocarbons—or a combination thereof—with independent rock, fluid, and pressure characteristics. 🔹Discovered Field (Green Field): An oil or gas field discovered by the National Iranian Oil Company (NIOC) or by…

  • Different types of tenders in Iran laws and regulations

    Different types of tenders in Iran laws and regulations

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    Types of Tenders According to Iran’ Tendering Law: Based on the Evaluation Stages (Article 4) 1. Single-Stage Tender:    Both the technical and financial proposals are submitted and evaluated simultaneously. 2. Two-Stage Tender:    The technical proposals are evaluated first; then, financial proposals are requested and reviewed from technically qualified bidders. Based on the Method…

  • Are EPC Contracts in Iran’s Oil Industry Considered “Fixed Contracts”?

    Are EPC Contracts in Iran’s Oil Industry Considered “Fixed Contracts”?

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    The question arises as to whether standardized contracts in the oil industry, particularly Engineering, Procurement, and Construction (EPC) contracts, possess a clear legal basis in Iranian law — and whether one can regard them as a new and emerging fixed contract under the Iranian legal system. EPC contracts are widely used in large-scale infrastructure projects. Despite their extensive application in engineering…