Upstream Oil and Gas Contracts of Islamic Republic of Iran and Explanation of Legal Implications and Requirements of New Contracts

This paper deals with the process of developments in upstream oil and gas contracts during 1979-1991 and 1992-2013. We will understand that any type of conventional contracts had not been concluded during 1979-1991 but in the latter period, three generations of Iranian service contracts named, “Buy-Back Contracts” have been designed and implemented. Due to the necessity of designing new upstream contracts we intend to analyze that which of the conventional upstream contracts are compatible with the current sovereignty laws of oil and gas industry? Regarding the dominant regulations on this sector, what are the concerns and proposal framework of experts about the new contracts? Finally, it seems that the dominant legal requirements on oil and gas upstream sector with the principles of Buy-Back contracts are more convenient than other types of conventional contracts. Of course, the new contracts regarding the current legal capabilities, should be both the ability of answering to concerns of critics as well as suitable flexibility in terms of oil and gas fields of the country.