The Journal of Modern Research on Administrative Law

The Journal of Modern Research on Administrative Law

The position and mechanism of technology transfer in oil contracts in the upstream sector of the oil and gas industry with the implementation in the legal system of mutual sales contracts and the new generation of contracts known as IPC with compliance with the policies of the Islamic Republic of Iran

Document Type : Original Article

Authors
Mohsen Rabii 1
maryam aqaeebejestani 2
Mohammad Rouhani moghadam 3
1 Doctoral student of private law, private law department Islamic Azad University, Semnan branch, Iran
2 Department of Public Law, Semnan Branch, Islamic Azad University, Semnan, Iran
3 Associate Professor, Specialized Doctorate in Fiqh and Fundamentals of Islamic Law. Islamic Azad University Semnan Branch, Iran
10.22034/mral.2022.560425.1359
Abstract
Today, the oil and gas industry is the center of policy and strategy of large and developed countries. In oil-rich countries, one of the most important contractual issues in the upstream sector of the oil and gas industry is the transfer and development of technology from foreign companies that own technology to oil-rich countries, which leads to the development of technology in these countries and the maximum use of their internal power. . The author's hypothesis is that the transfer of technology in general in the oil and gas industry in Iran is faced with a fundamental legislative problem because the existing laws and regulations only state some general principles. Therefore, Iran's legislative environment is dependent on creating appropriate legal bases in oil and gas rights for technology transfer. In oil and gas contracts, the issue of technology transfer is in the form of attached conditions or appendices, which sometimes have played an insignificant role in reducing the country's dependence on technology due to the generality and lack of guarantee of effective implementation. Secondly: In contracts of the upstream sector such as cross-selling and the new generation contract model known as IPC, if the components of the policy cycle, especially the formulation and implementation of policies are strictly followed, it becomes an important factor for strengthening the national and strategic interests of Iran. to be

Highlights

Today, the oil and gas industry holds great importance in the policies and strategies of large, developed countries. In oil-producing nations, a crucial issue in the upstream sector of the industry is the transfer and development of technology from foreign companies. This transfer promotes technological advancement within these countries and allows them to utilize their internal resources more effectively. However, there is a fundamental legislative problem in Iran regarding technology transfer in the oil and gas industry. The existing laws and regulations only provide general principles, which hinders the establishment of a suitable legal framework for technology transfer. In oil and gas contracts, technology transfer is often mentioned as attached conditions or appendices. Unfortunately, these provisions have not been effective in reducing the country's dependence on foreign technology due to their vague nature and lack of guarantees for implementation. Furthermore, in contracts within the upstream sector, such as mutual sales and the modern IPC model, following a strict policy cycle, especially in policy formulation and implementation, becomes crucial for advancing Iran's national and strategic interests. Therefore, it is necessary to establish a clear and structured mechanism that aligns with oil and gas contracts and emphasizes the importance of technology transfer. This mechanism should include a comprehensive annex that outlines the specific obligations and duties of the parties involved, ensuring efficient execution. The current research adopts an analytical-descriptive approach, relying on library research and internet sources for data collection. Oil has been a key commodity for Iran over the past century, playing a significant role in its government's budget. Iran's economic growth and major investments heavily rely on foreign exchange earnings from oil exports. Contracts play a vital role in the oil and gas industry, especially considering the increasing demand for energy. International contracts in the industry's upstream sector serve as tools for attracting foreign investment and engaging with international oil companies. The primary objective of regulating oil contracts is to develop oil fields. Technology transfer plays a pivotal role in economic development and the growth of oil-rich countries in this sector. The importance of technology transfer arises from the differing developmental progress among countries dependent on the industry, preventing them from effectively competing in global markets. Developed countries monopolize existing technologies, benefiting from their available resources and achieving significant growth. To bridge the gap between technology-rich and reserves-rich countries, efforts are made to transfer some level of knowledge and technologies from developed countries to host nations. However, for technology transfer to be effective, it must generate growth and benefits for the foreign company. In today's advanced world, technology transfer should not only be seen as a contractual provision but also as a strategic consideration between the parties involved in the contract.

Numerous studies conducted by legal and expert professionals demonstrate the effectiveness of technology transfer when certain conditions are met. These conditions include the parties' contractual intentions, internal capabilities, proper planning, the presence of necessary infrastructure, and readiness from foreign entities. A successful technology transfer relies on a well-defined strategy and precise mechanisms. The complete and successful transfer of technology occurs when it is absorbed, adapted, and integrated effectively. A country or industry can be considered successful in technology transfer when they have provided the necessary internal conditions and the owning company has the capacity to produce, expand, and develop the technology. Technology transfer is crucial in the oil and gas industry to achieve important objectives, which is why strategic policies should align with optimal exploitation of oil wells in the host country's upstream sector. It is essential to identify priorities and limitations in this sector to design an appropriate technology transfer model.

Keywords
Oil and gas industry
upstream sector
technology transfer
mutual sale agreement
IPC
Subjects

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The Journal of Modern Research on Administrative Law
Volume 5, Issue 17
Fifth year, 17th issue, Winter 2023
Autumn 2023
Pages 59-113

  • Receive Date 18 July 2022
  • Revise Date 15 August 2022
  • Accept Date 28 August 2022