After Islamic Republic of Iran was established, Iran’s oil contracts were signed in the form of project financing during 1979 to 1992and then in the form of buyback contracts up to 2015. Buyback contracts are a special form of the risky purchase of service (POS) contracts in which the contractor performs the exploration and development operations in return for a given wage.Buyback oil contracts were practically rendered inefficient considering their being the cause of instigation of many criticisms in jurists and the country’s scientific society and that they never led to the reservation of interests in operating phase and, on the other hand, they never resulted in Iran’s attainment of its codified oil objectives and programs. In the turn of the 2010s, the elites doubled their efforts to transform the oil contracts from buyback to partnership. This group of the individuals underlined that the second party has to be sufficiently motivated to transfer technology and prove a basic and long-lasting presence in the second place and pinpointed production sharing contracts as the best method for accomplishing such an objective and these contracts were called win-win by them. Such a mindset gave rise to the emergence and enactment of a special type of oil contracts known as IPC. The drafters of such contracts believed that IPC would meet the shortcomings of the buyback contracts but the opponents used to speak of the legal conflict of IPC to the upstream regulations in oil industry.
