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Comparative Investigation of Financial Systems of Service Contracts in Iran and Iraq Oil and Gas Industry With Respect to Valuing Hydrocarbon Reserves
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Ali Emami Meybodi1   , Mehryar Dashab2 , Faysal Ameri2 , Ali Moghaddam Abrishami2 , Masoumeh Akbari Birgani *3 |
1- Faculty of Economics University of Alameh Tabatabei
2- Faculty of Law University of Alameh Tabatabei
3- Faculty of Law University of Alameh Tabatabei , m.akbari@atu.ac.ir |
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Abstract: (2786 Views) |
Valuing reserves is important and essential for international oil companies because it enables them to finance projects at low rates in the financial markets. One criticism of buyback contracts is that they do not allow the contractor to reflect the value of reserves on its books. The purpose of this study is to investigate this issue in comparing Iran and Iraq oil service contracts with respect to joint fields. We undertake the study by examining primary sources such as rules and regulations related to oil producing companies in the USA, related international financial standards and financial provisions of Iran and Iraq oil service contracts.
Our research indicates that procedures for valuing reserves on contractors books are not clearly stipulated, but in theory it should be possible to reflect reserves under all contracts reviewed. However, in practice reserves can be reflected on contractors books under the new Iran petroleum contracts and Iraq service contracts, through use of percentage work completed under long term contracts, but use of this method is not possible in buyback contracts.
JEL Classification: D86, L24, Q48
Keywords: Book Reserves, Buy Back, Iran Petroleum Contracts (IPC), Iraq Service Contracts, Contract financial system
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| Keywords: Book Reserves, Buy Back, Iran Petroleum Contracts (IPC), Iraq Service Contracts, Contract financial system |
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Full-Text [PDF 698 kb]
(1149 Downloads)
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Type of Study: Thesis(PhD.) |
Subject:
Contracts
Received: 2020/12/1 | Accepted: 2021/05/23 | Published: 2021/09/1 | ePublished: 2021/09/1
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