Requiring domestic share in international oil and gas contracts, a comparative study of Iran's laws with Norway, Brazil and Nigeria

Zanganeh, Heshmatollah; Kashani, Javad; Kazemi, Abbas; Taklif, Atefeh

doi:10.22034/jgeoq.2024.482487.4142

Requiring domestic share in international oil and gas contracts, a comparative study of Iran's laws with Norway, Brazil and Nigeria

Authors

Heshmatollah Zanganeh ¹

Javad Kashani ²

Abbas Kazemi ²

Atefeh Taklif ³

¹ PhD student, Department of Law, Allameh Tabatabai University, Tehran, Iran.

² Associate Professor, Department of Private Law, Allameh Tabatabai University, Tehran, Iran.

³ Associate Professor, Department of Energy, Agriculture and Environment Economics, Allameh Tabatabai University, Tehran, Iran.

10.22034/jgeoq.2024.482487.4142

Abstract

The aim of the current research is to investigate the requirement of domestic share in international oil and gas contracts, a comparative study of Iran's laws with the countries of Norway, Brazil and Nigeria. The oil industry is the largest and most effective active industry in the country, and besides being the main source of energy supply in today's world, it plays an important role in determining the national power and international prestige of different countries. The oil sector in Iran's economy has provided the majority of the country's national income for many years, and in fact, this sector plays a dominant role in the country's economy. The policy of requiring internal share can have both an imperative and binding nature and an optional and interpretive nature. This depends on various variables such as the level of development of countries, the financial resources available in the country and the growth and maturity of different economic sectors of the country. Accepting the mandatory nature of the domestic share requirement and adopting a regulatory approach that aims to implement and monitor the implementation of the laws and other tools of this policy by international oil companies will result in the application of regulations that are binding in nature and if ignored, may It can lead to severe financial sanctions or loss of license in some cases.

Keywords

Domestic share requirement

international oil and gas contracts

rights of Iran and Norway

Brazil and Nigeria