He noted that significant changes in the global energy market have made it necessary to reconsider Iran's contractual models.

Abbas Kazemi Najafabadi, speaking at the first specialized PetroTalk session on Tuesday, highlighted the importance of oil contracts and their impact on the country's economy and politics. He explained that an examination of the evolution of oil contracts reveals that culture and politics hold greater significance than economic considerations.

Kazemi Najafabadi underscored the critical role of oil contracts in shaping the nation's economic destiny, noting that these agreements are not evaluated solely from a financial perspective but also for their broader social and political implications. He pointed out that the initial framework for contracts related to the extraction of natural resources was based on the concept of concessions, which grant exclusive rights to explore and extract resources.

The academic traced the evolution of oil contracts across different economic systems, emphasizing the fundamental role of governance in shaping the legal frameworks of these agreements. He noted that the modern oil era began in 1875 with the start of oil drilling and extraction. In Iran, the first oil law was passed in 1957, which more systematically defined the structure of concessions.

Reviewing the legal and economic developments in Iran's oil industry, Kazemi Najafabadi stressed the importance of national laws in safeguarding the country's interests. He argued that current views on concession agreements need reform. Following the 1973 oil shock and the energy crises of the 1970s, Iran shifted to a service contract model, which has remained unchanged. However, he noted that the extensive changes in the global energy market necessitate a reevaluation of Iran's contractual approach.

Kazemi Najafabadi stated that the service contracts currently governing Iran's oil industry lack the appeal needed to attract foreign investment. He emphasized that Iran's oil industry requires massive investment, and the existing contracts have failed to entice international investors to collaborate with Iran.

In conclusion, the academic suggested that to enhance the attractiveness of Iran's oil contracts and align them with the evolving global market, more flexible contractual models should be considered. Such changes could significantly impact the future of Iran's oil industry and its position in the global market.

The PetroTalk series of sessions, organized to analyze the economic, legal, and technical dimensions of the oil and gas industry, aims to provide a platform for dialogue and exchange of ideas among energy experts and researchers.