Elements of Insurance Clauses Stipulated in ‎Upstream Oil & Gas Contracts with Emphasis on the ‎New Model of Iranian Petroleum Contracts (IPC)‎

Several risks exist in upstream oil and gas industry so the contracting parties try to use legal approaches such as inclusion of insurance contractual clauses to reduce the inevitable economic consequences of adverse risk events. Therefore, along with the main purpose of this study, the main research question is “Are the insurance contractual clauses stipulated in the new pattern of Iranian Petroleum Contract (IPC) comprehensive and efficient enough? Otherwise, what are the elements comprising insurance clauses to be considered?” To achieve this end, insurance contractual clauses have been reviewed in three main models of upstream oil and gas contracts including concessions production sharing and service contracts of 19 different countries in addition to the new pattern of Iranian Petroleum Contract (IPC). This led to the confirmation of the related hypothesis as “there are different elements of insurance contractual clauses stipulated in upstream petroleumcontracts such as insurance rates, waiving subrogation right, etc.,” which led to achieving 18 elements as the main conclusions of this study. Then comparative analysis of these elements with the related insurance clauses of Iranian Petroleum contract was done, which resulted in identifying the shortcomings of this contract, including the non-consideration of some necessary elements as one of the other results. Finally, suggestions have been made to address the shortcomings of the insurance clauses of this contract, the inclusion of which will increase efficiency, in addition to avoiding ambiguity in interpretation and reducing legal claims in this area.