Law Studies
Hatef Sattariasmaroud; Abdolhossein Shiravi
Abstract
According to the form-out agreement the investor of the international petroleum agreement “farmor”, during the implementation of the project and due to various reasons such as lack of finance resources and/or incapability of contract performance, assigns provision of required investments ...
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According to the form-out agreement the investor of the international petroleum agreement “farmor”, during the implementation of the project and due to various reasons such as lack of finance resources and/or incapability of contract performance, assigns provision of required investments for the purpose of performing an upstream oil project and/or certain operations (well drilling) under the upstream contract to other entities “farmee”, and generally in case of fulfillment of the aforementioned affairs by the farmee, the farmor transfers to the farmee a percentage of its participating interest in the international petroleum agreement upon permission from the host country. In line with this, through evaluating the upstream contracts in Iran, as well as the necessities for attracting investments for the purpose of performing such contracts, it is possible to find out the importance of clause concerning the assignment of contract in order for creating required legal instruments for entering into the farm-out agreement in accordance with the rules and regulations. So that through concluding farm-out agreement between the present and the potential investors, prevent emerging difficulties arising out of mere assignment of the contract to the potential investors during the implementation of upstream contracts.
Law Studies
Mostapha Maddahinasab
Abstract
Considering the long-term nature of oil and gas contracts, managing the relationship between the parties to the contract is fundamentally important. In upstream oil contracts, according to the level of supervision and control of the host state over the petroleum project, the level of communication is ...
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Considering the long-term nature of oil and gas contracts, managing the relationship between the parties to the contract is fundamentally important. In upstream oil contracts, according to the level of supervision and control of the host state over the petroleum project, the level of communication is variable. In risk service contracts due to extensive supervision, there should be a lot of interaction and cooperation between the parties. This study examines Kuwait's model of technical assistance services contracts. It concludes that, due to its improved cooperative structure, this format of service contracts is more compatible with current conditions in Iran's oil fields, such as southern Pars. These fields are operated by Iranian oil companies, but need more technology to function properly. In this article, it is discussed how Technical Assistance Contracts (TACs) can generate an efficient solution for the issue at hand. The methodology is based on describing and analyzing Kuwait’s TAC.
Law Studies
Javad kashanei; Mohsen Matour; Faysal Ameri
Abstract
the formation of the current legal system is a function and is influenced by a basic element called time. An element that influences not only the formation of the legal system, but also its evolution.so, the legal system in the Iranian oil industry began with a contract and not with the legislation of ...
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the formation of the current legal system is a function and is influenced by a basic element called time. An element that influences not only the formation of the legal system, but also its evolution.so, the legal system in the Iranian oil industry began with a contract and not with the legislation of a law. In relation to the term "contractual framework", it seems necessary to explain that the contractual framework refers to the criteria which give the contracts such a feature that it distinguishes that contract and similar contracts from other contracts concluded in that field. What were these contracts? How did they form the legal system of the Iranian oil industry? What has been their impact on technology transfer in the oil industry? These are some of the questions that will be addressed in this work. Disappointment with the framework of previous agreements (concession agreements), along with socio-political contexts such as the nationalization of the oil industry, led to a re-examination of this industry's contract frameworks in the light of past experiences, better future benefits and national independence and sovereignty. But how successful it was, that is another matter. Because the oil companies did not simply want to transfer the maximum benefits to the countries with oil resources, and used the dependence of those countries to their industry as a tactic against this trend as much as possible. Therefore, the structure of contracts governing the oil industry should be considered as a result of this conflict of interests.
Law Studies
Abdolhossein Shiravi; Mahin Falahati
Abstract
Oil and gas industry play a crucial role in the developed and developing countries’ financial and economic development. Resource rich countries are extremely dependent on oil companies for the extraction of petroleum resources. Governments decide which company has the right to extract the petroleum. ...
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Oil and gas industry play a crucial role in the developed and developing countries’ financial and economic development. Resource rich countries are extremely dependent on oil companies for the extraction of petroleum resources. Governments decide which company has the right to extract the petroleum. However, according to the principle of permanent sovereignty over the natural resources, awarding the right to petroleum resources shall be exercised in the exclusive right of the people. Safeguarding the people’ right, governments are required to design both regulatory institutions and governance for develop, enforce and review of awarding regulations. For this reason, the present article analyzes the regulatory authority of petroleum right awarding in Iran. By reviewing the existing laws and regulations we conclude that the current status is chaotic and intricate due to the multiplicity in awarding regulators and inadequate governance. It is recommended to establish an awarding regulator based on the principles of regulatory excellence.
Law Studies
Hamidreza Afshari; Abbas Kazemi Najafabadi; Ali Emami Meibodi; Nooshin Jabbari
Abstract
Iran's Ministry of Petroleum due to empowerment of Iranian companies for executing local mega projects, regional and international markets penetration and upgrading national technology in petroleum upstream industry, predicted a competent Iranian partner called Exploration and Production (E&P) companies, ...
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Iran's Ministry of Petroleum due to empowerment of Iranian companies for executing local mega projects, regional and international markets penetration and upgrading national technology in petroleum upstream industry, predicted a competent Iranian partner called Exploration and Production (E&P) companies, for cooperating with the International Oil Company (IOC) in Article Four of the Cabinet Approval. Now considering the absence of IOCs, it seems that the capacity of other oil contract models to be used by Iranian oil companies should be examined. The purpose of this paper is to investigate the feasibility of Concession agreements’ execution, by an E&P company in Iran’s upstream industry. The research method is descriptive and analytical and governing laws of Iran are reviewed in this study. Since the host government makes the final decision on the conduct of oil operations, it cannot be described as domination of oil resources, and therefore does not seriously contradict the Iran’s Constitution. Furthermore, E&P companies will not be subject to Article 81 of the Constitution. In the Oil Laws, the only restriction on the inflow of foreign capital in the upstream industry of Iran has been observed, which again does not apply to E&P companies. In the Laws of the Five-Year Plans, this restriction of oil laws has been adjusted too much in which it seems that the restriction has also been removed for IOCs. Finally, the investigation shows that there are no major legal barriers in applying Concession agreement in case that the operator is an Iranian E&P company.
Law Studies
Hamid Reza Younesi
Abstract
The present article aims to argue indirect expropriation in international petroleum agreements and analyze the response of international arbitrations. In particular, international arbitral awards by the Iran–US claims tribunal, the Yukos case as an energy charter treaty arbitration, and certain ...
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The present article aims to argue indirect expropriation in international petroleum agreements and analyze the response of international arbitrations. In particular, international arbitral awards by the Iran–US claims tribunal, the Yukos case as an energy charter treaty arbitration, and certain North American Free Trade Agreement cases have been examined. The recent trend shows that taking foreign investors’ property may occur not only through legislation or nationalization but also by indirect methods that can have the same effect as direct expropriation. Indirect expropriation does not necessarily require the transfer of legal title from the international oil company to the host state. Hence, it is difficult to distinguish between legitimate regulation and measures that are tantamount to expropriation with the payment of compensation. Identifying an indirect expropriation is complex and depends upon the examination of the legitimate expectations of the investor concerning the enjoyment of its investment. Host governments may employ different methods to achieve what amounts to direct taking, but without acknowledging it as such, to avoid legal consequences of expropriation and then payment of compensation
Law Studies
Mohammadreza Asadollahi; Mohammad Mahdi Hajian
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 ...
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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
Law Studies
Mohsen Matour; Faysal Ameri
Abstract
Understanding the interplay between intellectual property (IP) rights and competition law in the context of technology transfer in the Iranian oil industry is a point this work discusses. While intellectual property rights enjoy a historical record and appropriate rules in this regard, the competition ...
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Understanding the interplay between intellectual property (IP) rights and competition law in the context of technology transfer in the Iranian oil industry is a point this work discusses. While intellectual property rights enjoy a historical record and appropriate rules in this regard, the competition rights in Iran are taking their initial steps. This imbalance stems from forming the legal system of oil in Iran based on contractual frameworks over time. The nagging problem to elaborate in this article is that technology transfer can be expected to occur when legal organizations concerning the relevant industries have already defined the type and purpose of technology transfer. Moreover, the general targeting in the upstream laws alone cannot meet the legal requirements for appropriate technology transfer. Therefore, when even one of the mentioned factors does not exist, one cannot expect constructive interaction in the above-mentioned legal systems.
Law Studies
Hamid Reza Younesi
Abstract
The present article aims to examine the risk of host governments’ interference with the property of foreign investors (expropriation) in the petroleum industry. Host states have the police power to make regulatory changes. The “police power” is defined as the inherent and plenary power ...
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The present article aims to examine the risk of host governments’ interference with the property of foreign investors (expropriation) in the petroleum industry. Host states have the police power to make regulatory changes. The “police power” is defined as the inherent and plenary power of a sovereign to make all laws necessary and proper to preserve public security, order, health, morality, and justice. It is a fundamental power essential to government, and it cannot be surrendered by the legislature or irrevocably transferred away from government. The government can interfere with the contract, change the terms, or directly take the investment. This is why international petroleum disputes and arbitration practices have addressed such risk. For this purpose, the concept of property and compensable property rights under international law are significant. Indeed, expropriation conveys a deprivation of a property owner of this property. This paper assesses the concept of expropriation, the international legal requirements for a lawful expropriation, and then analyzes the relevant international arbitral awards in petroleum jurisprudence.
Law Studies
Seyed mohammad Tabatabaeinejad; Foroogh Torabi
Abstract
Converting unused offshore oil and gas installations into artificial reefs as one of the alternative methods of decommissioning, is used in many coastal states across the globe for the purposes of coastal management, enhancement and attraction of living marine resources, protection and preservation goals. ...
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Converting unused offshore oil and gas installations into artificial reefs as one of the alternative methods of decommissioning, is used in many coastal states across the globe for the purposes of coastal management, enhancement and attraction of living marine resources, protection and preservation goals. Despite the positive impacts of artificial reefs, there are also potential negative impacts which require adequate maintenance of assets as well as, continuing monitoring and supervising. Although a lot of countries have comprehensive regulation on artificial reefs, many nations have blanket regulation requiring obsolete structures to be removed, yet it can bring about enormous environmental, socio-economic benefits. The sensitivity of deployment of structures as artificial reefs induced international and regional conventions to intervene and regulate the matter. The aim of this paper is to compare the most important international and regional conventions and critically compare and analysis them with the current Iran’s national laws and regulations. Iran is one of the biggest oil and gas producers and have a huge number of offshore installations which will require decommissioning in the coming years. Therefore, comprehensive national regulation should be enacted on decommissioning and also the possibility of creation artificial reefs. The authors seek out to evaluate the existing legislation in order to assess the potential capacity of Iran’s seas for converting the installations into artificial reefs.
Law Studies
Bassey Essien Kooffreh; Brian F.I. Anyatang
Abstract
This article in its introductory part will be devoted to conceptual clarifications of decommissioning and abandonment and (differences, if any). Part two, is the critical analysis of legislations on decommissioning in Nigeria. Part three is also a critical analysis on legal regimes and practices on decommissioning ...
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This article in its introductory part will be devoted to conceptual clarifications of decommissioning and abandonment and (differences, if any). Part two, is the critical analysis of legislations on decommissioning in Nigeria. Part three is also a critical analysis on legal regimes and practices on decommissioning in other jurisdictions such as USA, UK, South Africa. Part Four is a comparative analysis of legislations and decommissioning practices in Nigeria and another jurisdiction. Part Five Consists of findings/observations made during the research. In the end, recommendations and conclusions are drawn, part of which is a call for proactive actions by megacorporation and the Nigerian government in the sphere of timeous decommissioning of obsolete and failed platforms, enactment and, or, review of obsolete legislations regulating decommissioning as well as fulfillment of obligations under multi-lateral environmental treaties that regulate decommissioning and sustainable environmental management and protection. A comprehensive legal framework on decommissioning is urgently required to be enacted to detonate the time bomb on which the region is still sitting due to the fact that the 170 platforms are nearing their useful lifetime.
Law Studies
Hamid Reza Oloumi Yazdi; Mahyar Ebrahimi
Abstract
Natural gas infrastructure is growing and global LNG volumes are set to expand substantially. This results in more trade between different regions of the world and emergence of a more competitive and relatively more integrated global gas market. In addition, several key markets are currently undergoing ...
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Natural gas infrastructure is growing and global LNG volumes are set to expand substantially. This results in more trade between different regions of the world and emergence of a more competitive and relatively more integrated global gas market. In addition, several key markets are currently undergoing structural reform with the aim of opening them to competition. In line with these changes in the global market, gas pricing methods also need to be adapted. This paper discusses the challenges of natural gas pricing and price review in this new market environment. Firstly, the current structure of the global and regional gas markets is analyzed. Secondly, challenges in natural gas pricing and price review are discussed, and in this context oil-indexation and hub-indexation are analyzed in detail. Thirdly, the recommended framework for pricing and price review in the more competitive global market are presented. The pricing mechanism and price review framework should be tailored to the characteristics of the gas market and the stages of growth and maturity of the market.
Law Studies
Morteza Shokri; Ali Esmaeili Ardakani
Abstract
Economic sanctions imposed on heterogeneous states have played an important role as a tool of pressure in recent decades. Considering that most states nonconforming with the US are important players on the energy market, large part of this country’s sanctions policies has focused on the energy ...
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Economic sanctions imposed on heterogeneous states have played an important role as a tool of pressure in recent decades. Considering that most states nonconforming with the US are important players on the energy market, large part of this country’s sanctions policies has focused on the energy sector. With the evolution of the US shale oil industry, using energy as a tool of sanctions against target countries has received increasing attention by the US presidents in recent years. The US is using the geopolitical shift as an international strategy to compete with other powers in the energy sector such as Iran, Venezuela, and Russia. The US aims to use its energy embargo policy to curtail the influence of these players on the energy market and prevent their anti-American policies by fermenting economic crises within these countries. The question arises as to the extent of the effectiveness and sustainability of this US foreign policy strategy in a transitional international order. The article hypothesis is that due to inefficient unconventional resources in terms of market crisis, the rise of counter-hegemonic coalitions, and geopolitical tensions in regions such as the Middle East, one cannot be too optimistic about the sustainability of this situation. The authors of the article will endeavor to explain the above hypothesis within the framework of the hegemony theory and by using the trend-analysis technique while addressing the driving forces.
Law Studies
Mohammad Reza Mansour Esfahani; Amir Abbas Bozorgmehr
Abstract
The international chamber of commerce (ICC) created a generally accepted set of terms named INCOTERMS 2020 which provides that the risk of the loss of or damage to the goods passes from the seller to the buyer when the seller has fulfilled his obligation to deliver the goods. However, this rule is based ...
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The international chamber of commerce (ICC) created a generally accepted set of terms named INCOTERMS 2020 which provides that the risk of the loss of or damage to the goods passes from the seller to the buyer when the seller has fulfilled his obligation to deliver the goods. However, this rule is based on a false base, which causes numerous exceptions where the goods are delivered, but the risk remains on behalf of the seller. In this paper, we will prove that there is only one unexceptional factor which indicates whether the risk has passed through the other side or still remains with it; that factor is reaching the aim. The aim has a composite nature, and preparing the last part of that nature allows reaching the goal; this is the main reason for transferring the risk of the thing. Thus, when the buyer’s aim from the contract is fulfilled, the risk of the goods will be transferred to him or her, and when the seller’s aim from the contract is met, the risk of the price will be transferred to him or her. Generally, the aim or the cause of the obligations should be defined as the acquirement of the property and the possession of the thing which is peaceful and useful for enjoying with security. Hence, each term will be separately analyzed by the theory of the cause of the obligations in the civil law of France, and we will name this totally new theory which defines the goal as a composite nature the theory of the spirit level of the risk. The international chamber of commerce (ICC) created a generally accepted set of terms named INCOTERMS 2020 which provides that the risk of the loss of or damage to the goods passes from the seller to the buyer when the seller has fulfilled his obligation to deliver the goods. However, this rule is based on a false base, which causes numerous exceptions where the goods are delivered, but the risk remains on behalf of the seller. In this paper, we will prove that there is only one unexceptional factor which indicates whether the risk has passed through the other side or still remains with it; that factor is reaching the aim. The aim has a composite nature, and preparing the last part of that nature allows reaching the goal; this is the main reason for transferring the risk of the thing. Thus, when the buyer’s aim from the contract is fulfilled, the risk of the goods will be transferred to him or her, and when the seller’s aim from the contract is met, the risk of the price will be transferred to him or her. Generally, the aim or the cause of the obligations should be defined as the acquirement of the property and the possession of the thing which is peaceful and useful for enjoying with security. Hence, each term will be separately analyzed by the theory of the cause of the obligations in the civil law of France, and we will name this totally new theory which defines the goal as a composite nature the theory of the spirit level of the risk.
Law Studies
Niloofar Heydari Roochi; Nasrollah Ebrahimi
Abstract
Unlike many arbitrations, the arbitration procedure for price reviews in gas industry contracts is not based on allegations that one party has breached a contract or otherwise committed a legal wrong. Instead, arbitrators are asked to determine whether the economics of a contract has been changed in ...
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Unlike many arbitrations, the arbitration procedure for price reviews in gas industry contracts is not based on allegations that one party has breached a contract or otherwise committed a legal wrong. Instead, arbitrators are asked to determine whether the economics of a contract has been changed in the market and thus should be adjusted; if so, a new price formula should be established. Due to the complexity of the revision of gas prices, the gas experts have significant role in these arbitrations. Regarding the role of gas experts, gas price arbitrations have specific nature. In this article, the nature of these arbitrations is examined to establish whether they are arbitration or expert determination as one of alternative dispute resolutions (ADR). Iran has the second proven natural gas resources worldwide and is the third natural gas producer in the world, so Iran–Turkey case will come under scrutiny in this article.
Law Studies
Mostafa Elsan; Mehdi YousefiChehreghani
Abstract
Foreign investment contracts are one of the major ways to absorb the technology in oil and gas industry. Studies show that governments and investing companies prefer to gain more profit and control economic resources and political influence by investing financially and technically in developing countries ...
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Foreign investment contracts are one of the major ways to absorb the technology in oil and gas industry. Studies show that governments and investing companies prefer to gain more profit and control economic resources and political influence by investing financially and technically in developing countries than to buy foreign technology and intellectual property rights directly. On the other hand, for developing countries, the sum of foreign capital and technology within a contract is a great opportunity for advancement provided that the technology transfer is chosen with due regard to the country’s needs, requirements, and economic future. In this work, after examining the relationship between investment and technology transfer and its various methods in oil and gas industry, we will analyze the constraints on and the barriers to technology transfer through foreign investment in developing countries, including Iran, and provide a solution.
Law Studies
Hassan Azizi; Faysal Ameri; Ali Emami Meibodi
Abstract
The purpose of this study is to compare the stringency of and compliance with environmental requirements in the upstream sector of oil and gas in law of Iran and the USA. This study is conducted using the mixed entanglement method (qualitative–quantitative). In the qualitative part, library studies ...
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The purpose of this study is to compare the stringency of and compliance with environmental requirements in the upstream sector of oil and gas in law of Iran and the USA. This study is conducted using the mixed entanglement method (qualitative–quantitative). In the qualitative part, library studies are used. In the quantitative part, the studied society is a group of six professionals in the field of oil and gas, who filled out a questionnaire consisted of 34 questions prepared by the Worley Parsons[1] in a similar research approved by the jurisdictions of 10 countries. The questions are prepared by a team of experts with international experience. The components of stringency of and compliance with law during the phases of approval, operation, and closure of a hydrocarbon project are studied using the Delphi method. At the level of stringency, the environmental assessment in the US is carried out with human resources and costs 10 and 26 times more than those in Iran. The US, with 13 scores, is more stringent than Iran with 5 scores. In the project closure phase, Iran does not impose any obligations for rehabilitation and restoration. At the level of compliance, the construction environmental management plan (CEMP) is mandatory in both countries. In Iran, the list of violations and their consequences will not be published. The US regulatory mechanisms of restoration are an appropriate model. On the whole, Iran gains 29 scores, and the United States obtains 42 scores. The recommendations are based on these two scores.
[1]https://www.medicinehat.ca/home/showdocument?id=11659
Law Studies
Naqmeh Javadpour; Hamid reza Oloumi Yazdi; Seyyed Nasrollah Ebrahimi
Abstract
International oil and gas investment disputes constitute an important part of investor-state dispute settlement (ISDS) system. Investment arbitration which is regarded as a prevalent dispute settlement mechanism in this area has come under severe criticism since it creates huge costs, lengthens the process, ...
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International oil and gas investment disputes constitute an important part of investor-state dispute settlement (ISDS) system. Investment arbitration which is regarded as a prevalent dispute settlement mechanism in this area has come under severe criticism since it creates huge costs, lengthens the process, and devastates the parties’ long-term investment relationship. In recent years, the possibility of applying alternative dispute resolution (ADR) and hybrid dispute settlement mechanisms has largely been discussed. Mediation-arbitration (Med-Arb) is one of the hybrid integrated dispute settlement mechanisms which embodies flexibility, nonjudicial, and negotiate-oriented benefits of mediation and the finality advantage of arbitration simultaneously in a single process. In this method, mediation is first attempted by the parties before arbitration could be started; if settlement is not reached during the mediation phase, the appointed neutral or mediator will then act as (an) independent arbitrator(s), will continue the case under the arbitration process, and will render a binding arbitration award. In this method, if parties reach an agreement during the first phase (mediation process), they will not incur huge costs of lengthy investment arbitration. In this method, even if the first stage (mediation process) fails, since it has further clarified and narrowed down the disputes, then the arbitration process will be less lengthy and proceed more efficiently. Moreover, both investors and host states in oil and gas investment area do have strong ambitions to maintain the investment relationships. These goals are achieved better via adopting Med-Arb proceedings. The most noted concerns in this method relates to the issue of the impartiality of the neutral (mediator in the first stage) who acts as an arbitrator at the next stage. In other words, it may be argued that the confidential information learned by the neutral from the parties in the mediation stage may seriously impact on his/her impartiality in the arbitration stage. This issue can be responded in light of respecting party autonomy principle which selects the Med-Arb clearly and correctly for dispute settlement. This approach is affirmed and proposed by the UNCITRAL model law on international commercial conciliation (2002) as well. Also, concerns regarding the enforcement of international agreements resulting from mediation have already been addressed in the United Nations Convention on International Settlement Agreements Resulting from Mediation (Singapore Convention on Mediation), which has attained international acceptance by 51 state members so far.
Law Studies
Mahsa Farhaanjam; Abdolhossein Shiravi
Abstract
Energy has been always the focus of attention since the establishment of the WTO.The significance of this issue was doubled when the major energy-producing countries states sought to join the WTO.To join the WTO,many energy-producing and energy-exporting states inevitably needed to modify and change ...
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Energy has been always the focus of attention since the establishment of the WTO.The significance of this issue was doubled when the major energy-producing countries states sought to join the WTO.To join the WTO,many energy-producing and energy-exporting states inevitably needed to modify and change their own laws.The adoption of a dual pricing policy by the applicant countries appears as one of the controversial issues in this regard.By determining lower energy prices for their domestic producers,the energy-rich countries provide them with a superior position relative to their international rivals.From the perspective of some energy-importing countries,such behaviors are seen as subsidizes.Iran as one of the largest energy-rich states,has been seeking about twenty years to join the WTO.Iran subsidizes its domestic producers to support its energy sector and infant industries.This article focused on examining the pricing policies,and in particular,the approach to determine the price of energy in Iran.In addition,we studied of the impact of the pricing method of the energy sector in Iran on the process of its accession to the WTO by a comparative evaluation of the accession process of the energy-producing countries such asRussia andSaudi Arabia to the WTO.Through studying the laws and regulations of the energy sector of Iran, one can realize that Iran has been distancing from DP in recent years and is striving to approach the price of its energy to the global price by benefiting fromthe experiences of the performance of the membercountries of the WTO aimed at accelerating the process of its accession to the WTO
