Article from: OGEL 1 (2009), in Middle East, Buy Back Contracts
This article first outlines buy-back contracts (BBC) for development of Iran's oil and gas fields. Then it examines the main features of the mechanism. Third, it discusses the criticism of the buy-back agreement from a contractor and from the Iranian perspective. Furthermore, this paper outlines new developments of the enhanced buy-back contract and reviews the new buyback model proposed by NIOC to address these challenges. Finally it touches upon the possibilities of PSAs in Iran and briefly looks into the new Foreign Investment Law for buy-back contracts.