| Abstrakt: |
Due to the huge capital costs in the fiscal regime of new Iranian upstream oil contracts called IPC, the International Oil Company is committed to be present in the oil-possessed country and provide all the capital costs. Previously, in service contracts called buyback, remuneration was fixed and capital costs had a closed ceiling, which caused losses to international oil companies; thus International Oil Companies were reluctant to attend or invest in the Iranian oil industry. Hence, the changes in this section of the new Iranian upstream oil contracts were motivating and attracted foreign investors. In fact, unlike service contracts called buyback, capital costs and noncapital costs have open ceilings. In these contracts, not only no fixed amount of remuneration for the investor exists, but also the remuneration increases with production increase. This leads to the investor’s more motivation and incentive to apply the latest existing industrial technologies for optimum production and ultimately causes an increase in economic benefits for both parties. This Article studies the financial obligations of International Oil Companies in the new Iranian upstream oil contracts called IPC descriptively and analytically. [ABSTRACT FROM AUTHOR] |
