Analysis and Evaluation of Effects of Hidrocarburi Fields Development Through the Iran Petroleum Contracts (IPC) on the Country's Macroeconomic in Future

Seeking to attract foreign investment for developing oil and gas fields of Iran, petroleum ministrty of Iran has recently enveiled a new contrac framework, named Iran Petroleum Contract (IPC). This article evluates the effects of these contracts on national economy. For this purpose, the fiscal simulation of IPC has been designed. In this model all the main fiscal terms and provisions, including payment cap, wage adjustment with respect to R-factor and output price, cost structure and production profile, has been formulated. The evaluation shows that net income of these contracts for developing oil fields, will be USD 90.7 billion and USD 57 billion in reference and pessimistic scenarios respectively. In addition, in the pessimistic scenario about USD 58 billion of contractor debts will be unpaid which should be repaid in longer period after contract period to the contractor. The impacts of these contracts on government budjet and national development fund are addressed in this article, as well.