The buy-back contracts in the upstream sector of Iran’s oil and gas industry are used as a current contractual mechanism in attracting investment, particularly foreign investment from the early 1370s (1990s). The reason behind the use of the said contracts is categorized under the political, economic and legal justifications. Nevertheless, the main reasons of pursuing this type of contract are statutory requirements such as Principles of 43, 44, 45 and 81 of the Constitution, compliance with the principles of state’s possession and sovereignty over oil and gas resources, and securing and providing state’s interests as well as requirements for economic development. The buy-back contracts, as designed and used in Iran, not only aim to secure state sovereignty over oil and gas resources, but also the contractor (foreign investor) would be obliged to transfer and hand over the field after commissioning and production process to the National Iranian Oil Company.
Montazer, M., & Ebrahimi, S. N. (2012). Reasons of Using Buy-back Contracts in Iran’s Upstream Oil and Gas Sector. International Law Review, 29(47), 31-45. doi: 10.22066/cilamag.2012.16353
MLA
Mehdi Montazer; Seyed Nasrollah Ebrahimi. "Reasons of Using Buy-back Contracts in Iran’s Upstream Oil and Gas Sector". International Law Review, 29, 47, 2012, 31-45. doi: 10.22066/cilamag.2012.16353
HARVARD
Montazer, M., Ebrahimi, S. N. (2012). 'Reasons of Using Buy-back Contracts in Iran’s Upstream Oil and Gas Sector', International Law Review, 29(47), pp. 31-45. doi: 10.22066/cilamag.2012.16353
VANCOUVER
Montazer, M., Ebrahimi, S. N. Reasons of Using Buy-back Contracts in Iran’s Upstream Oil and Gas Sector. International Law Review, 2012; 29(47): 31-45. doi: 10.22066/cilamag.2012.16353
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