A comparison study on contractual and financial issues between Buy-Back and IPC Case study of Anaran iol field

This study focus on the two contractual and financial models of oil and gas field development. During these years Buy-Back contracts were issued and run to develop oil and gas field. However some investors and contractors in one side and oil ministry in other side feedback to change some contractual items.
Therefore they decided to issue an attractive model to influence more investing company and raise oil and gas production. So a new model of contract named Iranian Petroleum Contract (IPC) has been issued to develop the fields with items is more flexible in case of time, scope of work and financial affairs. In this study, we tried to compare IPC model and Buy-Back model in case of financial and contractual issue and show that this flexibility has made a better situation for both sides.
As we has concluded during the compare of buy back and IPC, financial items such as IRR and NPV will improve and the impact of oil price has been reduced in new model.