The main characteristic of this new generation of petroleum agreement is to provide the terms and condition more attractive for oil companies by covering their wishes and in increasing their revenue.
The IPC has 4 bases.

1.Model Contract:
Preparing a model contract applicable for Green Field (the fields which are not explored before) and for Brown Field (the fields which are under production), as well applicable for high risk, medium and low risk fields. In fact, this new generation of petroleum agreement could be applicable to all kind of field and for any production it means for oil, Gas, oil and Gas reservoir.
2.Cooperative model:
The second characteristic of IPC is its cooperative nature. In fact the partnership between IOC and Iranian Company from the exploration phase up to the production phase is recognized generally. In addition and particularly the parties could establish a joint operating company (j.o.c) for performance of the production.
By this method of partnership, the NIOC secures the intervention of IOC in the production phase and provide a mechanism for technology transfer to the Iranian company as a partner of IOC.
3.The costs issue:
One of the main problems of petroleum agreement is coming from the uncertainty nature of the cost occurred particularity in the development phases.
The NIOC has tried to overcome this uncertainty problem in the third generation of petroleum agreement (namely EDC contract) which is considered as third generation of the Iranian petroleum agreement. In EPC, NIOC has used the “phasing system” and “tendering procedure after Feed” (front end engineering).By this two methods the degree of uncertainty in the ceiling cost of development and production has obviously decreased. The same method had been applied in IPC.
The detail of cost management will be developed in further articles.
4.Certainty repayment back and bonus
One of the attractive characteristic of the new generation of petroleum agreement is to securising the recovery of the cost of petroleum operation (exploration, development) in the manner that in high probability the IOC could recover back all respective costs spends during the performance development and production phases.
In next part of this article, the detail the four abovementioned characteristics will be developed  on the line of the terms and condition of IPC.


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