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.

[Of course, a project may be structured primarily as Lump Sum while certain segments are defined under  Rate, or vice-versa. For instance, in EPC gas transmission and compressor-station projects, pipeline installation can be priced under a  Rate mechanism, whereas construction of the compressor station remains Lump Sum. Such hybrid structures are typically referred to as Convertible EPC.]

Historically, applying a  Rate fiscal framework in upstream oil and gas projects—particularly field study projects—has not been feasible. This limitation arose from the absence of any regulatory authority issuing an official Schedule of Rates for such technical services.

Recently, the Ministry of Petroleum has taken a substantial step forward by publishing an exclusive Schedule of Rates for Oil and Gas Facilities (Upstream Laboratory and Field Study Services). These Units covers seven major categories:

1. Enhanced Oil Recovery (EOR/IOR) Studies
2. Reservoir Fluid Properties Studies
3. Core Analysis Studies
4. Reservoir Production and Productivity Studies
5. Drilling and Completion Studies
6. Geochemical Studies
7. Geological Studies

The document is available on doert.mop.ir and has also been shared through the Petrollex Telegram channel.

Download Unit Rates document for Upstream Laboratory and Field Study Services

Additionally, fifteen specialized Oil & Gas Schedule of Rates documents have been prepared by the Deputy Minister for Engineering, Research, and Technology, covering the following areas (All for the Year 1404):