Petroleum Business Review

Abstract The choice of financial regime in oil-rich countries depends on proven reserves, exploration and production costs, geological characteristics, political risks, and oil market conditions. In this article, contractual components of three contracts IPC, BUYBACK, and PSC are introduced using Visual Basic programming language, and a model structure for a 42-season period scenar-io with oil prices is created. Also, modeling based on the parameters of the Shadegan oil field is another innovation of this work. The aim of this research is to investigate the effective indica-tors in the oil and gas industry contracts based on oil price scenarios. The results of this study show that many of the constraints of the reservoir owner country have been modified in the direction of protecting oil fields and effectively controlling contractor's fees in modified mutual agreement and production sharing contracts, and the financial system of the new oil contracts is more efficient in case of an oil price increase and in the final years of production compared to production sharing and buyback contracts. In this study, comparing indicators such as internal rate of return, payback period, profitability index, and the share of both parties in the contract based on real and simulated data showed that entering into new oil contracts in Iran, especially IPC in the Shadegan oil field, can protect the oil field, prevent uncontrolled oil extraction, and control contractor's revenues, leading to lower costs and higher revenues compared to buyback and production sharing contracts for the host country (Iran).

Abstract The need to speed up the creation of innovation in the oil industry and support it properly in order to respond to the increasing needs of the world today has caused activists in this field to use various forms of protection. Patent systems and trade secrets are the main ways of protecting intellectual achievements in the oil industry. In recession conditions such as the Corona epidemic, which had a negative impact on the production and income generation of oil companies, intangible assets such as trade secrets or registered inventions could be a very good source of income for these companies. The complexity and longevity of technology in the upstream field of the oil industry has caused the reluctance of companies active in this field to register patents, which will slow down the dissemination of knowledge, creation and development of innovation. Therefore, due to the necessity of energy production, lack of resources and the need for complex and combined technologies in this field, patenting becomes inevitable.

Abstract Energy Justice and Sustainable Development Goals: The Case of Common Gas Field Projects of Iran and Qatar

Abstract
The issue of exploiting shared resources appears a major controversy i.e. each country try to get more out of common field. Energy justice, as a new concept, seeks to apply the principles of justice in the production and exploitation, distribution and use of energy. This study tries to assess the extent to which Iran-Qatar common field is being exploited within the framework of the three tenets of energy justice. This study intends to identify energy justice in terms of having sustainable development indicators in common gas field of Iran and Qatar. We use the concept of Sustainable Development Goals (SDGs), especially from Goals that are related to the concept of energy justice to assess the realization of energy justice. The assessment of the tenets of distributional, procedural and recognition justice shows that energy justice is not pursued in joint exploitation of Iran and Qatar

Abstract Oil and gas projects are very complicated, and various risks are included in oil and gas projects and contracts. Different aspects of risks can be addressed in a risk management process in which assessment, efficient distribution, and allocation of contractual risks are critical. Many researchers have studied project risk management in oil and gas industries, focusing on legal and contractual risks aiming to reach an optimal risk distribution, which does not necessarily mean having a complete contract. This work thoroughly studies the related research and performs a complete review of different downstream petrochemical projects contracts to review contractual risk allocation in usance finance contracts. Concentration on used risk management mechanisms in both cases and related risks shows severe issues and bugs in both contracts. Some contractual risks are not addressed, and the case contracts are not balanced regarding contractual risks distribution

Abstract Unlike other organizations, employees of the oil company retire at the age of 60, and their retirement is not based on 30 years of service. Therefore, they require more attention during their retirement. Accordingly, the aim of this research is to design and explain a socially responsible marketing model with an emphasis on the retired community in Gachsaran Oil and Gas Exploitation Company. The research method was mixed-exploratory, based on foundational data theory in the qualitative phase, using purposive sampling, and in the quantitative phase, using descriptive and inferential statistics and structural equations analysis. The results show that Gachsaran Oil and Gas Exploitation Company has a process that cannot be performed separately from society. Therefore, having socially responsible marketing in the company can help retirees with public services and provide a way to strengthen the motivation of employees and support the interests of the community during retirement. Thus, these organizations need managers who can determine the future path of the organization with depth, guide individuals to the determined path, and create motivation for transformation based on social marketing in employees of organizations

Abstract Financing upstream oil and gas projects in Iran—particularly for non-governmental companies—faces numerous obstacles, including the lack of effective guarantee mechanisms, absence of credible collaterals, limited access to sovereign guarantees, and the skepticism of financial institutions. This paper, adopting a descriptive-analytical approach and grounded in the study of existing legal and institutional frameworks, explores the legal capacities for designing and utilizing alternative instruments to traditional guarantees in the financing process of high-risk projects. Within this framework, and based on the “Production and Infrastructure Financing Act”, the executive bylaw on the establishment of non-governmental guarantee funds, and other upstream legal documents, the establishment of an institution titled the "Oil Guarantee Fund" is proposed as an innovative solution. This fund is designed to mitigate default risk, facilitate project credit assessment, and replace bank or property-based guarantees for companies active in the oil and gas value chain. Its legal structure is envisioned based on the model of non-governmental institutions and private joint-stock companies. The proposed model has been formulated through a legal analysis of the relevant documents and informed by the outcomes of expert panels comprising specialists in energy law, finance, and public policy. Findings of the study indicate that the establishment of such a fund, capable of issuing valid guarantees based on contractual commitments, provides a practical tool to strengthen institutional trust and facilitate investment in upstream oil and gas projects. The article also presents a conceptual and institutional framework for the fund and offers recommendations for its policy-level and legal implementation.

Abstract One of the governmental research organizations is Research and Technology Organization (RTO), whose primary is to harness science and technology in the service of innovation or public bodies and industry, to improve the quality of life and build economic competitiveness. Despite the importance and role of research and technology organizations in the innovation system, previous studies have not addressed the concept of technology development projects' effectiveness implemented in RTOs.
This study attempts to investigate this concept from two aspects: "the concept of effectiveness in research projects" and "the concept of effectiveness in RTOs" to define this concept in a research and technology organization (RIPI). To evaluate and implement the proposed framework, eight technology development projects are studied at the Research Institute of Petroleum Industry. Based on the developed indicators and their weights, the effectiveness of eight technology development projects has been evaluated using ARAS, COPRAS, MOORA, and TOPSIS multi-criteria decision-making methods.

Abstract The United States’ foreign policy is influenced by specific theoretical logics that also shape its energy policies. These logics play a crucial role in understanding the country's approach to energy strategies. In this article, the authors analyze the alignment between the energy policies of the Trump and Biden administrations and the broader theoretical underpinnings of American international policy. The authors contend that the theoretical logics that drive US foreign policy has significant implications beyond foreign policy, affecting various domains, including energy. In this context, the article seeks to answer the main question, "What theoretical frameworks have shaped the energy policy of the United States from 2017-2023, during the Trump and Biden administrations?" It contends that Donald Trump’s energy policy was driven by a quest for hegemony predicated on the logic of supremacy. Conversely, Joe Biden’s energy policy embraced a multilateral orientation based on liberal internationalism and integrated environmental and climate concerns with America’s economic aspirations. The article is structured as follows: the introduction sets the context for the analysis, while the literature review examines the relevant theoretical literature. The conceptual framework section outlines the authors' theoretical approach. The subsequent sections analyze the energy policies of the Trump and Biden administrations, respectively. The authors then identify points of continuity between the two administrations before concluding.

Abstract One of the main strategies in oil industries management is the evaluation of the relationships between the customers and employees. To do so, the interpretive paradigm, the qualitative approach, and the Grounded Theory Approach have been used. As for the qualitative approach, snowball sampling has been used, and the latent content analysis technique has been used to analyze the in-depth reviews, helping to code and identify the employees’ cognitive appraisal indices. Also, as for the quantitative approach, simple random sampling was used, with a structural equation model used for data analysis. The results and findings of the study indicate that the top managers in Iran Petroleum Products Distribution Company, especially those in the Human Resource Development, Commercial, and Research & Technology sections, can use the model extracted in the current study as well as the suggestions provided, to pay more attention to the mental health of the Frontlie Employees (FLEs). They can also use the results to know how the employees deal with the customers’ aggression and abuse. Hence, the current study can be useful for the oil industries researchers.

Abstract Nowadays, using appropriate technologies in order to increase productivity of production factors can be resulted in optimal factors employment and production enhancement in factories. Technological change is considered as one of the main sources of productivity growth. The purpose of this paper is to analyze the various aspects of technological change and their relationship with total factor productivity in Iran’s petroleum refineries.
In order to achieve this goal, we used the econometric method to estimate the cost function. This method seems useful to estimate the structure of factors demand, considering changes in factors prices and technology status. We estimated a translog cost function as well as equations system of cost share, using Seemingly Unrelated Regressions (SUR) approach from 1982 to 2012.
The results show that the average rate of technological change was -0.482 percent over the study period. It means that over time, the cost growth rate of production units was decreased mainly due to technological change. Furthermore, the results indicate that technological change was biased towards the use of more labor and material, while it saved more capital and energy. Also, based on the estimation results, we decomposed total factor productivity growth rate into the contributions of technological change and economies of scale. Decomposition results show that the share of technological change in the productivity growth is greater than that of scale economies.

Abstract Regarding the contingency theory, the purpose of this research is to identify factors affecting the development of accounting and financial [management] procedures (AFP) for joint operating agreements in Iran’s oil and gas industry. To this end, at first, some partial factors were identified through a deep study of theoretical foundations. Subsequently, in order to identify environmental factors, a semi-structured interview was conducted with accounting and finance experts in oil and gas exploration and production companies whose competences were approved by the Ministry of Petroleum. Using the theoretical framework and the interview results, a questionnaire was set up and distributed in a wider range in order to add potentials and eliminate, modify, and finally rank the raised factors. The results showed that changes in laws and regulations, use of services in Iran’s oil and gas industry, changes in business practices, information technologies, the structure of the principal contract,  and conflicts among operational parties are the most important factors that should be taken into account in the formulation and development of AFP’s for these contracts in Iran’s oil and gas industry, and, in this regard, some suggestions are provided.
 

Abstract Protecting shareholders’ rights today is considered a practical competitive function at the level of capital markets, which is based on transparent and coherent actions within the framework of laws and regulations. In other words, the more the level of company operations is based on regulatory and legal procedures, the more level of protection of shareholders’ interests can be expected to be observed more uniformly by companies. This study aims to design a forensic accounting model focusing on protecting shareholders’ rights of petrochemical companies. The collection tool based on the analytical nature of the research consisted of two parts: evaluation checklist and matrix checklists. In fact, in order to promote the level of innovation in the relationship between forensic processes and quantitative accounting to collect data for the development of the forensic accounting model, through meta-synthesis and Delphi analysis, the components and propositions of forensic accounting were determined in the qualitative section, focusing on the protection of shareholders’ rights; then based on the matrix checklist, the most influential research propositions were determined through the analysis of fuzzy networks. The research results in the qualitative part indicate the existence of three components of structural mechanisms; it was the meta-structural and legalization of forensic accounting to protect shareholders’ rights, which was approved in the form of 18 statements. Further, the results in the quantitative part concerning the analysis of fuzzy networks were identified. The most effective component of forensic accounting in the protection of shareholders’ rights was structural mechanisms, and the most influential statements of forensic accounting in the protection of 

Abstract Context/purpose: Factors affecting the technology, and innovation levels of crude oil treatment’s surface facilities, are numerous and extensive. Localization of surface facility as a high-tech Technology, which include oil and gas production and processing units, has always been one of the main issues, and technology management and innovation are essential priorities for these facilities. The purpose of this practical, heuristic, and quantitative research is to develop the studies and identify the current state of technology for crude oil treatment’s surface facility technology level in Iran and compare it with its global one. Methodology: Considering the wide range of factors that are used in evaluating technological and innovative capabilities with uncertainty. This research is applied in terms of purpose. Using a survey method and collecting qualitative data through a questionnaire, has led to descriptive results. This study by referring to experts and specialists, these factors according to their importance and priority in different classes of classification and then with statistical analysis, the relationship and correlation of these factors have been examined. For this purpose, 44 experts in oil and gas industry have been used for replying the qualitative questionnaire, then the fuzzy system model has been used to investigate the uncertainty in their answers and Quantitative results. Findings: The results of this study show that the most influential factors in surface facilities such as technological and innovative factors and managerial potential and human resources, etc. are not at an acceptable level compared to developed countries. Conclusion: The analysis of uncertainty between opinions of experts and factors investigated also confirms that attention to innovation and technology capacity and Technology capability and human resources in the National Iranian Oil Company should be increased.

Abstract Since a large number of the oil and gas projects are related to the supply chain, the selection of contractors and suppliers is very important. In projects, a contractor is obliged to supply the goods from suppliers and manufacturers approved by the clients, while most companies in Iran, including the company surveyed in this research, i.e. Iranian Offshore Engineering and Construction Company (IOEC, do not have a scientific approach to this issue). The main objective of this research is providing a scientific and practical approach to ranking suppliers and contractors at IOEC and selecting the best ones. In order to achieve such an objective, an integrated model of Swing and TOPSIS methods with fuzzy approach has been designed and applied to a real case. The actual data used are obtained from the post-lay survey of the exports and infield pipelines of South Pars development phases 13, 14, and 22.
Keywords: Supplier Selection, multi attribute decision making (MADM), Oil and Gas, IOEC, Swing, Technique for Order Preference by Similarity to Ideal Solution (TOPSIS), Fuzzy, Pipelines

Abstract Designation of incentive mechanisms to increase the speed of liquidity of receivables is one of the leading options for streamlining domestic resources in the field of oil and gas industry financing. The main objective of this research is to investigate and optimize the liquidity methods of gas sales receivables in line with the requirements of the National Iranian Gas Company. After a deep review of literature, we extract methods and legal platforms for receivables liquidation methods. The current research is an applied and descriptive-analytical research in terms of its purpose and methodology. The data analysis is a combination of quantitative and qualitative methods and required data for this study including the amounts and duration of deferred receivables by different categories of subscribers of the NIGC during 2012 to 2018. Subsequently, in order to visualize the data in the form of heat tables, Microsoft's Business Intelligence software is applied to understand the process of creating and settlement of receivables, cluster receivables by the different categories of subscription and, finally, reveal the subscriber behavior patterns in disbursements. Finally, using theoretical foundations and experts' opinions, a set of optimal methods has been recommended to accelerate the process of collecting current receivables, depending on the behavior of different groups of subscribers. Based on the results of the interviews, NIGC should apply IT-based methods, incentive policies and deterrent (punitive) strategies to accelerate the liquidation of receivables in household and commercial subscription.

Abstract Identification of the strategic parameters of Iran’s energy-policy model;
• Sensitivity analysis of the entire dynamic model considering system stability in uncertainty conditions;
• Machine process including sentence-mining, analysis of frequent patterns, prediction of time series, and
formation of dynamic analysis blocks in dynamic systems analysis;
• Extraction of the strategic parameters of the carrying capacity in the energy-policy model.

Abstract Internationalization of businesses is considered as a key factor in economic development and growth of the economic entities. On the other hand, the ability of the system in terms of endurance and reliability is inevitably dependent on the success that the system gains in communicating with the external environment; in other words, the sustainability of the system entirely depends on the system capability in terms of adaptation and responsiveness to the environment. Furthermore, technology-based businesses are highly dynamic and use different internationalization patterns. A literature review shows that comprehensive studies have not been conducted despite the necessity of today’s businesses to move toward sustainable internationalization. Therefore, this research examines the existing patterns by presenting a model of sustainable internationalization in technology-based businesses. In the present study, six technology-based businesses in oil and gas industry have been investigated using a multi-case interview method. The validity and reliability of the data collection tools have been confirmed. The results of the interviews performed during the two coding stages revealed that economic, environmental, social, and technological factors are among the factors influencing the adoption of sustainable business internationalization strategies along with a focus on a sustainable business model. This study also presents different types of sustainable internationalization strategies and classifies the sustainability index of internationalization under two categories of profitability and sustainability of the relationships in the network.

Abstract The present study examines the investment model of the National Development Fund (NDF) in the upstream oil and gas industries, focusing on the risks associated with field development. Given the NDF's recent entry into the investment arena, the challenges in this field have been analyzed in this article. Furthermore, the NDF 's investment policies and guidelines, project prioritization, and the Non-Meddle Investment model (I-HOPE) as the NDF’s main strategy to reduce risk and increase resource effectiveness are introduced and analyzed in detail. Finally, alongside a comparative review of the NDF’s investment model and field development challenges, solutions are proposed to improve the NDF’s investment process in this sector. This study, by evaluating the strengths and weaknesses of the I-HOPE model in confronting the inherent risks of field development, provides a framework for optimizing future investments. These measures help the NDF to optimally manage risks, increase resource returns, and play a more effective role in the country's economic development.
Keywords: Non-Meddle Investment Model, Risk, Uncertainty

Abstract Though it is generally accepted that information asymmetry has an impact on capital structure policy, the nature of the information asymmetry is not well understood. Recent theoretical works and empirical evidences suggest that financing choice depends upon the information asymmetry about investment risk of the particular use of funds (Halov & Heider, 2012) (Rao, Mohanty, & Baxamusa, 2015). Consistent with this view, we analyzed the data gathered among 199 companies listed in Tehran Stock Exchange during 2009-2016 by The Multiple Linear Regressions in order to test research’s hypotheses have been applied. We also examined the influence of Petrochemical industry on that relationship. The findings show that equity is used to fund projects with greater information asymmetry about their risk such as intangible assets and capital expenditure, while debt is used to fund investments with lower information asymmetry about their risk such as liquidity enhancement. We also found that the membership in petrochemical industry has no effect on the intangible assets and cash holding’s financing method, but concerning with capital expenditure and working capital the impact is significantly negative.

Abstract The United States is the world's first producer and consumer of oil and play a special role in international oil market relations. In a sense, due to the differences in the energy programs of the parties of this country, we will see significant changes in the international energy markets. The Trump's economic thinking in business field is based on the neo-mercantilist while the Democrats believe in global and multilateral trade. The most important energy policies of the Republican Party are the development and expansion of fossil fuel production, increasing the share of the oil market, lifting environmental restrictions, confronting OPEC, and unilateralism in the oil and gas trade. In contrast, the Democrats' most important plans in the US election are to return to the Paris Agreement and re-impose environmental restrictions, reduce oil production through legal sanctions such as taxes, expand renewable energy and use financial resources to manage the oil market and trade convergence. The main question of this article is what effect do US parties energy programs have on the oil market? The method of this research is a qualitative in a descriptive-analytical manner using desk research.

Abstract Supply chains have experienced rapid growth in recent years. Focusing purely on economic performance so as to optimize costs or return on capital can no longer guarantee development or sustainability in the chain. Hence, the concepts of green supply chain management and sustainable supply chain management emerged to emphasize the importance of social and environmental concerns along with economic factors in supply chain programming. Using the system dynamics method and considering knowledge management, this study investigates the variables related to this topic and the variables of sustainable supply chain management, and it determines the relationships between these variables and their impact on the research purpose. To achieve this, first, previous studies are reviewed, and the relevant variables are extracted and finalized according to the experts. Next, a system dynamics model is designed, and various scenarios are defined by changing the effective values of the system. Eventually, several policies are presented to achieve the optimal situation. The optimal values of the ten main influential variables are extracted according to the expert opinion, and the effects revealed by the model are determined by these changes.

Abstract Stock price prediction is one of the crucial concepts in finance area. Machine learning can provide the opportunity for traders and investors to predict stock prices more accurately. In this paper, Closing Price is dependent variable and First Price, Last Price, Opening Price, Today’s High, Today’s Low, Volume, Total Index of Tehran Stock Exchange, Brent Index, WTI Index and Exchange Rate are independent variables.
Seven different machine learning algorithms are implemented to predict stock prices. Those include Bayesian Linear, Boosted Tree, Decision Forest, Neural Network, Support Vector, and Ensemble Regression. The sample of the study is fifteen oil and gas companies active in the Tehran Stock Exchange. For each stock the data from the September 23, 2017 to September 23, 2019 gathered. Each algorithm provided two metrics for performance: Root Mean Square Error and Mean Absolute Error. By comparing the aforementioned metrics, the Bayesian Linear Regression had the best performance to predict stock price in the oil and gas industry in the Tehran Stock Exchange.

Abstract Organizations enter international competitive markets because of different motivations such as gaining international fame, long-term growth, increasing profitability, taking advantage of economies of scale, maturing domestic market, the intensity of competition in a domestic market, governmental rules and regulations. However, all of the companies aim to export performance improvement. According to the oil industry situation in Iran’s vision, the 4th paragraph of general energy policies and, not having a comprehensive model of Iran’s oil products’ export performance, this research could improve and develop this industry in international markets. This research method is phenomenology, and statistical society includes export and marketing managers and experts in the oil industry. Non-probability sampling and snowball sampling methods were used in this research. A semi-structured depth interview was used to gather information for this qualitative research, and seven in-depth interviews were done regarding the saturated rule. Structure, internal, interpretive, and descriptive validity were used for the validation. For surveying reliability, revision while coding and surveying by another informed person was employed to ensure correct coding. After open, axial, selective coding, and using ATLAS.ti qualitative software, suggested antecedents of Iranian oil products’ export performance include market orientation, company resources, marketing mix, and macro environment. The items of Iranian oil products’ export performance include financial performance, customer satisfaction, and customer retention. Most previous studies have focused on positivism and quantitative research methodology, while we used the qualitative method

Abstract With the increasing competitiveness of the capital market, one topic attracting the attention of many financial researchers in recent years is the formation of abnormal stock returns as a stimulus for restructuring companies due to the difference between actual returns and expected (normal) returns. It can motivate investment in the capital market. The purpose of this study is to evaluate the impact of the reasons for the formation of abnormal stock returns on the content of the autopoietic restructuring theory of companies operating in the petrochemical industry in the capital market. In this study, to identify the components (reasons for the formation of abnormal stock returns) and research propositions (content themes of corporate autopoietic restructuring theory), a combined analysis was used with 15 accounting experts at the university level. In the quantitative part, the components and propositions identified in matrix questionnaires were evaluated by the interpretive ranking process (IRP) by 20 financial managers of capital market petrochemical companies. The results showed that the most compelling reason for the formation of abnormal stock returns is the institutional and regulatory causes of the stock market, which has the most significant impact on the dimension of the autopoietic restructuring strategy of petrochemical companies. In other words, institutional and regulatory changes in the stock market by upstream institutions will be able to influence the restructuring process to match the content with the structural process (the autopoietic approach).

Abstract Considering the limited resources available, firms must rank their most distinctive capabilities in order to succeed in entering international markets. This research aimed at prioritizing transnational capabilities including marketing, managerial, human resources, production, financial, logistics, research and development, quality and standards and consultation and interaction with the government affecting on the entry of the Iranian steel pipe manufacturers producing gas and oil transit steel pipes into international markets. The study population consisted of experts and procurement, business and marketing managers of the 8 biggest oil and gas steel pipe manufacturers working in Iran. Two pair-wise comparison questionnaires employed to collect the required data. Fuzzy Decision Making Trial & Error Laboratory (FDEMATEL) and Fuzzy Analytic Network Process (FANP) techniques used to analyze the data. The results revealed that the marketing (Net Weight=0.225) and human resources (Net Weight =0.035) capabilities attained the highest and lowest priorities, respectively. The paper is sharing the value creation by presenting a potential process including systematic techniques for ranking transnational capabilities to enter the international markets considering the competitive environment.