Article from: OGEL 1 (2009), in Middle East, Buy Back Contracts
The Iranian Buy Back Agreement is a short term Risk Service Contract struck between the National Iranian Oil Company and an International Oil Company, IOC, and is for petroleum Exploration and/or Production rights. The IOC is a Contractor to NIOC and never gains Equity Rights in Crude Oil being reimbursed in cash after completing an agreed Scope of Work. The Reimbursement includes Cost Recovery and an agreed Rate of Return. Some authors have doubted whether the Agreement is licit under Sharia law.