An analysis of the environmental approach in oil contracts

Document Type : ISI

Authors

1 Professor, Faculty of Law and Political Science, University of Tehran, Iran

2 Ph.D Candidate in Law of Oil and Gas, University of Tehran, Iran

Abstract

The purpose of this article is to study how oil contracts deal with the issue of the environment. In this context, with a view to the history of oil contracts, since the traditional privileges namely up to the mid-twentieth century, it was found that environmental issues had not been raised in the contracts in this period of time and only one of the advantages had dealt with such issue which was itself incomplete and lacked a clear mechanism. Gradually, in the contracts which were concluded by the mid-twentieth century onwards, provisions regarding the protection of the environment were inserted therein and at the present time most of the oil contracts contain such provisions. In some contracts, there are detailed and specific commitments to environmental protection also related to dismantling of facilities and protecting the environment of indigenous peoples living in the area of operation; however, a study of different contractual patterns shows that the provisions of the contracts are mostly general and vague and, in many cases, they are not able to impose specific obligations applicable to investing companies. It seems that investee countries preferred the attraction of investment on environmental protection and in this respect they just mention some general rules.

Keywords

Main Subjects

References

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Journal Of Researches Energy Law Studies
Volume 1, Issue 1 - Serial Number 1
Spring & Summer
April 2015
Pages 91-116

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