Iran in a Dilemma: Adherence to Buyback or Transition to Production Sharing Agreements?
Article from: OGEL 4 (2010), in Upstream Petroleum Regulation incl. Host Government Contracts
[Revised version December 15 2010] For a decade and a half, Iran's contractual tool to develop its petroleum industry has been buyback. Throughout these years, a set of modifications have been made aimed at boosting the investors' interests. Yet, the question that remains to be answered is: Was/is buyback the best option? This paper seeks to address this question through the appraisal of buyback's details and comparing them with those of PSA. Whatever the answer, it is unrealistic to expect Iran to opt for PSA in lieu of buyback. Nevertheless, tactics such as the ...