Explanation of the Principles Governing Buyback Contracts in the Field of Oil and Gas with Consideration of New Models
Keywords:
Contract, Buyback, Oil, Gas, New ModelsAbstract
In order to advance and harmonize buyback contracts and oil and gas agreements, numerous laws and regulations have been enacted to standardize these contracts. Among them are buyback contracts and the new model of oil contracts ratified in 2015, which incorporate various legal principles and rules. These principles include the principle of contractual freedom, the principle of good faith, the principle of trust and confidentiality of information, the principle of contractual relativity, the principle of contractual binding force, the principle of the necessity of attracting foreign investment in the oil and gas industry, the principle of host-state sovereignty over natural resources and its expansion, the principle of sovereignty over natural resources and the stabilization clause in petroleum contracts, along with dozens of other principles that can be examined within buyback contracts and the new oil contract models. Consequently, buyback contracts outline the general principles of petroleum agreements, whereas the new petroleum contract models introduce a different approach, emphasizing principles such as the optimal increase of oil and natural gas production capacity—particularly in joint fields—and the integrated implementation of exploration, appraisal, development, production, and operation projects throughout the entire life cycle of the field. Therefore, the present article, using a descriptive-analytical method, aims to examine the foundational principles governing buyback contracts in the oil and gas sector with a particular emphasis on the new petroleum models. The findings indicate that the foundational principles governing buyback contracts in the oil and gas sector are rooted in the goal of standardizing and harmonizing this type of contract.
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