Analyzing the Potential Hazards Associated with the New Iranian Petroleum Contracts (IPC) from NIOC’s Perspective

Piri, Mahdi; Darboui, Hossein

doi:10.22050/pbr.2025.487722.1356

Analyzing the Potential Hazards Associated with the New Iranian Petroleum Contracts (IPC) from NIOC’s Perspective

Document Type : Original Article

Authors

Mahdi Piri ¹

Hossein Darboui ²

¹ Assistant Professor of International Energy Law, Faculty of Law and Political Science, University of Tehran, Tehran, Iran

² Ph.D. Candidate, Department of Law, University of Tehran-Kish International Campus, Iran

https://doi.org/10.22050/pbr.2025.487722.1356

Abstract

Iran’s latest risk service contract, known as the Iran Petroleum Contract (IPC), has been introduced to the international upstream market with the aim of attracting foreign investment in the country’s oil and gas sector. Several terms and conditions distinguish the IPC from the previous Iranian upstream oil and gas contract, the buyback contract. The objective of this investigation is to examine the legal implications of signing contracts in Iran, as well as the contractual terms and conditions of a signed contract in the Cheshmeh Khosh field. This study offers valuable insights into the potential hazards of the IPCs from the perspective of the National Iranian Oil Company (NIOC) by providing realistic information about the IPC and utilizing qualitative methods such as library and documentary research. Moreover, it is designed to assist the NIOC in effectively responding to and monitoring these risks, thereby promoting investment in the development of Iran’s oil and gas initiatives and protecting the national interest of Iran.

Highlights

In-depth Analysis of IPC Hazards: This study critically examines the potential risks associated with the Iranian Petroleum Contracts (IPC) from the perspective of the National Iranian Oil Company (NIOC), identifying key areas of legal and operational vulnerability.
Legal and Economic Risk Factors: Key hazards identified include contractual ambiguities, financial uncertainties, and regulatory challenges that could impact Iran's oil and gas sector and its attractiveness to international investors.
Recommendations for Contractual Stability: The study offers strategic recommendations aimed at strengthening IPC frameworks, mitigating risks, and enhancing NIOC’s negotiation stance in future agreements.
Contribution to Oil and Gas Law Scholarship: This work contributes to the understanding of petroleum contract frameworks within complex geopolitical contexts, making it highly relevant for scholars and practitioners in oil and gas law, contract negotiation, and international arbitration.

Keywords

Oil and Gas Contracts

IPC

Buy Back Contract

Risk

Subjects

Law Studies

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