Uutilization, Transfer and Development of Technology in Iran’s Upstream Oil and Gas Industry Contracts

Islamic Republic of Iran is considered as one of the major holder of oil and gas reserves in the world. In order to obtain the better performance when investing and operating in the oil and gas fields, it is highly requested that an international oil company ("IOC") should update its hardware, software capabilities and, in particular, project management methods, in order to utilize and transfer the best available technology while getting involved with National Iranian Oil Company ("NIOC") for the research and development (R&D) of the existing technology. This study attempts to define the concept of utilization, transfer and development of technology in oil and gas upstream projects, and to specify the boundary lines of differences between utilization, transfer and development of technology when carrying out the oil and gas upstream projects. Furthermore, this study shall also highlight the main issues and elements should be considered in the upstream projects. After due considerations given to the issue of utilization, transfer and development technology, this study concludes that first the issue of utilization, transfer and development of technology and know-how should be seriously considered by IOC when exploring, developing and operating Iran oil and gas projects. Secondly, various lines of rights and duties of both IOC and NIOC in the technology issue should be clearly identified, understood and concluded in the concerned Iran upstream contracts. Third, such contracts need to be concluded with special delicacy in such a way that they embrace the essential issues and the vital provisions as well as sanctions for non-compliance. Finally, this research concludes that any attempts related to the utilization, transfer and development of technology will only be useful and fruitful when both NIOC and IOC endeavor hard to mutually discuss and understand this very important "national interest driven" requirement, and implement its comprehensive plan jointly in order to achieve the goal of utilization, transfer and development of technology and know-how, thus, to satisfy the national interests of the Country.