The principle of contractual freedom and its limitations in upstream oil contracts based on TEFCEL Model

The principle of contractual freedom is one of the fundamental principles of international contracts, especially in the oil and gas industry. Although upstream oil contracts follow the contractual freedom, the said principles include some limitations because of the special nature of the contracts and the limitations should be analyzed. In this study, an analysis of the mentioned issues is done using an academic and practical approach. Based on the strategy, the provisions of contracts shall be designed, concluded, and enforced in such a way that could facilitate oil investments. Besides, they should be able to pave the way for the development of oil and gas fields based on contractual balance and win-win principle in the contractual interests between host states, national oil companies (NOCs), and international oil companies (IOCs).