ABSTRACT
This chapter examines the history, legal frameworks and key characteristics of past and present oil and gas contracts in Iran. This addresses the first main question in this book regarding the legal frameworks and key characteristics of past and present oil and gas contracts in Iran. It also examines aspects of the second main question concerning the strengths and weaknesses of the past and present contractual forms (considered through comparative legal analysis). This examination is particularly in regard to Iran’s national interest in the development of the upstream oil and gas industry and in the context of Iran’s legal system.
Basically, the legal and contractual framework of the Iranian oil and gas industry can be divided into three periods. The first period covers the exploration and discovery of oil in Iran to nationalisation (1901–1951), the second period is from nationalisation to revolution (1951–1979) during which time all oil and gas industry (exploration, development and exploitation) operations were carried out and controlled by the government under the petroleum acts and legislation, and the third period covers the post-revolution phase (1979–2018) in which Islamic Law is implemented (this phase is considered in more detail in Chapter 6).
This Chapter primarily undertakes a legal and comparative analysis of the contractual frameworks associated with these historical periods within the evolution of the Iran’s oil and gas industry.
