Comparison Research on Buy- back and Production Sharing Contracts in Upstream projects of Oil and Gas Industry of Iran

Subject Areas : Financial Economics

Hooshang Momeni Vesalian ¹ , Hojatolla Ghanimi Fard ² , Mohammad Mahmuodi ³

1 - Assistant Professor, Islamic Azad University Central Tehran Branch
2 - Assistant Professor, Allameh Tabatabaee University
3 - M.A. in Energy Economics

Received: 2015-06-11 Accepted : 2015-06-11 Published : 2009-03-21

Keywords: Concession Contracts, Production Sharing Contracts, Buy Back Contracts, Analytical Hierarchy Process (AHP), Independent Fields Oil and Gas, Joint Fields Oil and Gas, upstream project in oil and gas industry,

Abstract :

Using the Analytical Hierarchy Process (AHP), this research compares Buy-back and Production Sharing Contracts (PSC) together to find the optimum contractual method in finance and project implementation in oil-upstream section for both independent and Iranian joint fields. The most important decision-making criteria for making contracts in upstream section of oil and gas industry are classified to "Before" and "After" contract approval. The criteria were selected by Delphi method. To do this research, two questioners were filled out by professionals in oil industry in two stages and the data was analyzed by EC software. The analysis of data indicates that the PSCs are preferable than Buy-back contracts in both independent fields (76.56) and joint fields (73.46).