Transfer of Ownership in Joint Venture Contracts and Principle of Nafy-e Sabil Based on Imam Khomeini’s Views

Today, crude oil is one of the most important economic resources, utilization of which requires foreign investment and interaction with international oil corporations through inking appropriate contracts. Joint venture contract is among agreements reached between an oil company of the hosting country and a foreign oil corporation as investor. According to the agreement, the contractor explores and produces crude oil in a specified area and according to the terms and conditions stipulated in the contract. The benefits are thus shared between the two parties. Despite the fact that joint venture contracts are used as an appropriate contractual model in some countries, there are some ambiguities concerning these agreements that question their capacity for implementation. One such ambiguity that makes implementation of these contracts uncertain is about the transfer of ownership and its contradiction with the principle of Nafy-e Sabil (no-dependence rule) as an important jurisprudential principle. Authors of this paper have reviewed various views and analyses and have come to the conclusion that joint venture contract is not in contradiction with the principle of Nafy-e Sabil in the sense of rejecting dominance of the foreigners on public property, thus it does not contradict public ownership of the oil reserves.