Tag: Petrollex.ir
-
NIOC Transaction Regulations
🔰 The National Iranian Oil Company Longing for Its Own Transaction Regulations?! These days, it is frequently stated in many circles that the main reason for delays in upstream oil industry projects lies in the cumbersome regulations and bylaws governing tender procedures, the Iranian Government Electronic Procurement System (SETAD Iran), and the like—and that if…
-
Oil and Gas Reserves Evaluation in Simple Terms
⭕️ Why is reserves evaluation important in the first place?Reserves evaluation is the heart of decision-making in the oil and gas industry. Nearly all key decisions—field development, investment, financing, reporting to regulatory authorities, and even asset insurance—are ultimately built around one simple question:How much oil or gas can we ultimately produce economically?Contrary to common perception,…
-
“Petroleum Costs” in Iranian Petroleum Contract (IPC)
In examining the evolution of upstream petroleum contracts, the fiscal regime is one of the main distinguishing features among different contractual frameworks.Across all contractual models used in Iran to date—from early concession agreements, to pre-revolution production sharing contracts, and later to various forms of service contracts adopted after the revolution (beginning with the first generation…
-
Conventional and Unconventional Oil and Gas Reservoirs
Hydrocarbon reservoirs can be divided into two categories: conventional and unconventional. By outlining the characteristics of these two types of reservoirs, we aim to explain their distinctions in simpler terms for legal professionals. It should be noted that contracts for the development of unconventional oil and gas reservoirs are considered an untapped area in Iran’s…
-
Workflow for Reviewing Contract Delays in the Oil Industry
One of the challenges between employer and contractor is the method of reviewing contract delays. For this purpose, the “Guideline on Handling Contract Delays” was issued in 2023 by the Deputy Ministry of Engineering, Research, and Technology of the Ministry of Petroleum. click here to download “Workflow for Reviewing Contract Delays in the Oil…
-
“adverse selection” in field development contracts
Is Iran’s oil industry facing “adverse selection” in field development contracts? To begin, it is useful to briefly review the concept of adverse selection in economic enterprises, so that we can later explore its dimensions within the National Iranian Oil Company (NIOC). – In contracts theory, the concept of information asymmetry means that one party…
-
“Financing Production and Infrastructure” Law
Is the new law titled “Financing Production and Infrastructure” a step forward? What changes does it bring? – Recently, on May 1, 2024, this law was promulgated by the President to the Judiciary, the Ministry of Economic Affairs and Finance, the Ministry of Industry, Mine and Trade, the Plan and Budget Organization, and the Central…
-
“Financing” in Upstream Oil and Gas Projects
Oil and Gas projects, due to their large scale, the volume of goods and equipment required, and the technology and expertise involved, demand substantial capital. Accordingly, various types of contracts have been designed, some of which—such as buy-back agreements—already include financing mechanisms. However, in certain cases, contracts are concluded where the financing mechanism is separate…
-
Was the oil nationalized or state-owned?
(On the occasion of the nationalization of the oil industry) This is a question that arises from time to time, especially on the occasion of March 20th (29th Esfand), and much has already been written about it. But briefly, it should be said that the term “national” is not the opposite of “state-owned”. In the…
-
When do we perform Fishing operations during drilling?
[Special explanation for legal professionals] It is better to begin with a definition of Fish. Imagine that during drilling, a section of the drillstring—located several hundred meters downhole and transmitting rotary torque to the bit—breaks for any reason (which we will not discuss here), causing it to become disconnected from the upper part of the…