Oil Contracts

One of the concerns regarding the environment is the pollution caused by the extraction and transportation of oil products. In this regard, paying attention to international oil contracts is crucial. The observance of the principles of environmental law in oil contracts affects reduction of oil pollution, and the role of these contracts in adjusting the behaviors of the parties must be monitored. Insertion of responsibility for compliance with environmental principles in oil contracts means recognition or the possible aggrieved party, determining the pollutant, facilitating the legal process in favor of the aggrieved party, and protecting their rights in regards of receiving compensation or restoration. Determining the guarantee of proper execution for oil pollution in oil contracts, will obligate the parties to use standards that will reduce oil pollution. These standards are the governing principles over the environmental regulations such as the principle of prevention, the principle of public action, the principle of joint responsibility, the principle of transparency, the principle of compensation by the polluter, and the principle of precautionary approach which will be imperative in the document text; their implementation will reduce oil pollution and gradually eradicate it. In this article, using the Descriptive-analytical method, the implementation of oil contracts in the light of environmental standards in US and Iranian law is examined and environmental challenges and solutions to upstream oil contracts are presented.

the formation of the current legal system is a function and is influenced by a basic element called time. An element that influences not only the formation of the legal system, but also its evolution.so, the legal system in the Iranian oil industry began with a contract and not with the legislation of a law. In relation to the term "contractual framework", it seems necessary to explain that the contractual framework refers to the criteria which give the contracts such a feature that it distinguishes that contract and similar contracts from other contracts concluded in that field. What were these contracts? How did they form the legal system of the Iranian oil industry? What has been their impact on technology transfer in the oil industry? These are some of the questions that will be addressed in this work. Disappointment with the framework of previous agreements (concession agreements), along with socio-political contexts such as the nationalization of the oil industry, led to a re-examination of this industry's contract frameworks in the light of past experiences, better future benefits and national independence and sovereignty. But how successful it was, that is another matter. Because the oil companies did not simply want to transfer the maximum benefits to the countries with oil resources, and used the dependence of those countries to their industry as a tactic against this trend as much as possible. Therefore, the structure of contracts governing the oil industry should be considered as a result of this conflict of interests.