Document Type : Research Paper
Authors
1 Allameh Tabataba’i University
2 Department of Private Law, Faculty of Law , Allameh Tabataba'i University
3 Islamic Azad University, west Tehran branch,
4 Faculty of Law, Allameh Tabataba’i University, Tehran, Iran
5 Faculty of Economics, Allameh Tabataba’i University, Tehran, Iran
Abstract
Deteriorating condition of facilities and operational units in Iran's oil sector necessitates immediate rehabilitation and modernization initiatives. This urgency is compounded by escalating operational costs and the constraints of domestic resources within the Ministry of Petroleum, highlighting the need for increased private sector investment and involvement. In this context, the implementation of Rehabilitation, Operation, and Transfer (ROT) contracts as a public-private partnership model presents a promising approach to tackle these challenges.
This study seeks to examine the obstacles and advantages linked to the adoption of the ROT framework within Iran's oil industry. Utilizing a qualitative research methodology, the investigation incorporates case studies, with data collected through document analysis and comprehensive interviews. The results indicate notable disparities in how the ROT model is perceived in Iran compared to other nations. To date, only two public-private partnership projects have achieved operational status under the National Iranian Oil Company (NIOC). Despite various challenges, limited experiences with the Build-Operate-Transfer (BOT) model suggest a potential for future public-private collaborations. Moreover, the ROT model's extensive applicability in Iran's oil sector, particularly concerning NIOC projects, is reinforced by its advantages over traditional models. Given that ROT projects require lower capital investment and entail reduced risks associated with product ownership, engineering metrics, and land allocation, they are likely to be preferred over BOT or other conventional contractual arrangements such as design and construction within Iran's oil industry.
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