IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Comparative Analysis of Fiscal Terms of Iran Petroleum Contract (IPC) and Production Sharing Contract (PSC): Case study of South Azadegan field

Listed author(s):
  • Sahebhonar, Hamed


    (PhD Candidate in Economics, Ferdowsi University of Mashhad)

  • Lotfalipour, Mohammad Reza


    (Professor of Economics, Ferdowsi University of Mashhad)

  • Hooshmand, Mahmood


    (Professor of Economics, Ferdowsi University of Mashhad)

  • Feizi, Mahdi


    (Assistant Professor of Economics, Ferdowsi University of Mashhad)

Registered author(s):

    This paper simulates and compares the fiscal terms of Iran Petroleum Contract (IPC) and Production Sharing Contract (PSC) for first time. The Scenario approach has been used, in which timing and the volume of investment and production profile are assumed as given and the effects of fiscal parameters of the contract on the key variables such as Internal Rate of Return (IRR) and take of the contractor are computed. This paper uses the technical and economic information of the South Azadegan field (phase II) as a case study for financial simulation. One of the significant results is the possibility of reaching the same economic and fiscal results regardless of the contract type. Another important result of this article is that the IPC fiscal regime is less flexible and progressive than PSC and is less attractive specifically in more capital intensive fields. The reason of this issue is some restriction in IPC such as amortization of the capital costs and having longer payback period and the lack of direct relation between IOC’s fee and the field revenue.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    File Function: Full text
    Download Restriction: no

    Article provided by Faculty of Economics, Management and Business, University of Tabriz in its journal Quarterly Journal of Applied Theories of Economics.

    Volume (Year): 4 (2017)
    Issue (Month): 1 (May)
    Pages: 87-118

    in new window

    Handle: RePEc:ris:qjatoe:0067
    Contact details of provider: Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ris:qjatoe:0067. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sakineh Sojoodi)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.