Treffer: Petroleum Profitability through Comparing the Financial Structure of Oil Contracts and Determining the Appropriate Contract: IPC, PSC, and Buyback.

The choice of financial regime in oil-rich countries depends on proven reserves, exploration and production costs, geological characteristics, political risks, and oil market conditions. This work introduces contractual components of three contracts Iran petroleum contract (IPC), buyback, and production sharing contract (PSC) using Visual Basic programming language and creates a model structure for a 42-season period scenario with oil prices. Further, modeling based on the parameters of the Shadegan oil field is another innovation of this work. The aim of this research is to investigate the effective indicators in the oil and gas industry contracts based on oil price scenarios. The results show that many of the constraints of the reservoir owner have been modified in the direction of protecting oil fields and effectively controlling contractor's fees in modified mutual agreement and production sharing contracts. The financial system of the new oil contracts is also more efficient in case of an oil price increase and in the final years of production compared to production sharing and buyback contracts. Comparing indicators such as net present value, payback period, profitability index, and the share of both parties in the contract based on real and simulated data shows that entering new oil contracts in Iran, especially IPC in the Shadegan oil field, can protect the oil field, prevent uncontrolled oil extraction, and control contractor's revenues, leading to lower costs and higher revenues compared to buyback and production sharing contracts for the host country (Iran). [ABSTRACT FROM AUTHOR]

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