Seyed Nasrollah Ebrahimi; saede ghasemi
Abstract
Recently, the resource-rich countries by adopting a variety of policies has intended to increase their shares in petroleum operations. The law enactment as to the requirement for local content utilization is a way through employing the workforces, equipment and products locally provided in the territory ...
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Recently, the resource-rich countries by adopting a variety of policies has intended to increase their shares in petroleum operations. The law enactment as to the requirement for local content utilization is a way through employing the workforces, equipment and products locally provided in the territory by increasing the value-added to the country’s economic other than the extraction project. Upon oil exploration in Iran, especially after the nationalization of petroleum industry and also the Islamic revolution, different rules and regulations have been enacted in respect of local content. Currently, the “Law on Maximum Utilization of Manufacturing and Service Rendering Capabilities to Resolve the Country’s Requirements and Strengthen them in the Course of Export and to Modify the Article (104) of Direct Tax Act” is the most important instrument which reflects the local content requirements including: project assignment to Iranian companies, Iranian-foreign joint venture or foreign companies, performance requirement, respecting minimum percentage (51%), information requirement, monitoring and controlling requirement and refers to the sanctions of defaults and exceptions. This article attempts to explain each of the mentioned requirements, sanctions and exceptions and refers to the existing gaps by considering the characteristics of petroleum industry and proposes respective recommendations as to the case.
Seyed Nasrollah Ebrahimi; Mehrzad Tajik
Volume 15, Issue 40 , September 2013, , Pages 37-68
Abstract
Given the substantial role of oil and gas industry, particularly thecontribution of upstream development projects in Iran economy ,the needfor attracting and promoting foreign investments on its upstream projectsbesides insuring adequate protection of the capital flowed speciallythrough Buy-Back formula, ...
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Given the substantial role of oil and gas industry, particularly thecontribution of upstream development projects in Iran economy ,the needfor attracting and promoting foreign investments on its upstream projectsbesides insuring adequate protection of the capital flowed speciallythrough Buy-Back formula, is indisputably vital . On that account, thearticle attempts to outline the relevant prevailing rules and regulations inorder to assess Iran’s legal position in promoting and protecting foreigninvestments attracted in upstream sector of its oil and gas industry. TheArticle strives to mark and analyze such rules and regulations andattempts to shed light on the legal system governing this highly strategicindustry. In doing so, it will duly examine the upstream Exploration andDevelopment Service Contract (“Buy-Back”), with particular emphasison to the rules and regulations applicable to Iran’s Third Generation ofthe Buy-Back contract, Fifth Five Year Development Plan of the country(2011) as well as the reformed Petroleum Act of2011
