The Investigation of the Structure of Accounting and Financial Procedures Annexed to Joint Operating Agreements and the Proposal of a Customized Framework for Iran's Oil and Gas Industry

The oil and gas industry is internationally known for its unique characteristics from past to the present. The huge capital requirement, the risk sharing of resource exploration, the need to use economies of scale, the rule of laws and regulations, the efficiency and effectiveness growth, the use of capacities and capabilities, etc. are among the reasons that have increased the application of International Joint Operating Agreements in recent years. In Iran, due to the conclusion of new Iranian oil contracts called IPC and despite the economic conditions such as sanctions, the use of joint contracts in the oil and gas industry has been welcomed by exploration and production companies. The development of joint contracts in the oil and gas industry requires the clarification of financial relations between the partners, which are attached to the joint contract in the form of Accounting and Financial Procedures. The purpose of this study is to investigate the structure of Accounting and Financial Procedures at the international level in order to provide an appropriate accounting and financial framework for consortium contracts in the Iranian oil and gas industry. The AFPs increase the speed of contract execution by regulating financial relations between joint partners, increasing mutual trust and adhering to accounting principles, procedures and standards, and can be the basis for the decisions of accountants and financial managers in exploration and production companies. Given the lack of these AFPs in the country, the importance and necessity of this research are obvious to experts.