The Comparison between the Iranian Petroleum Contract (IPC) and the National Iranian South Oil Company’s Contract (NISOC) Using Transaction Cost Economic Approach: The Application of the Method of Analytical Hierarchy Process

Abstract

One of the issues which internationally is important in the oil industry is related to the Upstream industry of oil contracts. Changes made in these contracts consist of differences made directly in relation to the importance of the number of hydrocarbon sources and the number of shares each party is going to gain. If more structure of these contracts is emphasized and fortified, more duties and places of each party will be complicated. In this research, the comparison is made between two contract models which have been recently proposed and overviewed. The criterion used in selected contracts is from the National Iranian south oil company (NISOC) and Iranian Petroleum Contracts (IPC). The research has concentrated on the efficient economic cost role used in these contracts. A questionnaire was conducted based on the analytical hierarchy process, and a survey was conducted among the professionals of the oil industry. The results showed that most of those who participated in the survey agreed that the National Iranian South Oil Company’s Contract (NISOC) has a better criterion for the efficient role in economic cost

Keywords

• an iranian petroleum contract
• national iranian south oil company
• transaction cost economic
• analytical hierarchy process