Neda Davoodi - LLB, LLM Oil and Gas Law, Petroleum University of Technology,

In the broad meaning, petroleum contracts including all contracts related to mining,construction, operation, transportation, distribution and refinement and financing and cover, all phases of oil operations from beginning to end. However, the authors in thefield of oil and gas have distinguished between the contracts concluded in connection with upstream and downstream operations and more addressed to upstream oilcontracts. In this regard, petroleum upstream contracts, refers to those patents or contractual arrangements whereby oil-riches countries, grant exploration, development, production and exploitation of oil resources in whole or in part to oilcompanies. Invention of various types of oil contracts is an effort, to create a balance between the interests of players of petroleum industry. The oil industry in the whole world witnessed three generations of concessions and production sharing contracts and service contracts, that each has its own characteristics and functions.