Analysis of the Role of the Permanent Committee for Prevention and Resolution of Disputes in EPC Contracts in the Oil Industry and Comparison with Similar Institutions

Azizi, Sajedeh; Ghorbani Lachevani, Majid; Afshari, Mohammad Reza

doi:10.48311/clr.2025.101652.0

Analysis of the Role of the Permanent Committee for Prevention and Resolution of Disputes in EPC Contracts in the Oil Industry and Comparison with Similar Institutions

Articles in Press

Document Type : Original Research

Authors

Sajedeh Azizi ¹

Majid Ghorbani Lachevani ²

Mohammad reza Afshari ²

¹ Master's student in Oil and Gas Law, Petroleum University of Technology, Tehran Petroleum Faculty.

² Assistant Professor of Petroleum University of Technology, Tehran Petroleum Faculty

10.48311/clr.2025.101652.0

Abstract

With the adoption of the General Conditions of EPC Contracts in 2024 and the inclusion of the “Permanent Committee for Dispute Prevention and Resolution” in article 75, a new mechanism was introduced in Iran’s oil industry to prevent disputes and expedite their resolution before arbitration. Using a descriptive–analytical method and based on existing documents and regulations, this study examines the legal status, duties, and jurisdiction of the Committee and compares it with similar domestic and international institutions such as the FIDIC Dispute Adjudication Board. Findings show that the Committee is a quasi-advisory body with preventive functions, capable of managing disputes swiftly, cost-effectively, and through technical expertise. While its non-binding decisions make it similar to mediation, it plays a more active role in proposing solutions and overseeing contract performance. Despite advantages like efficiency and specialization, challenges such as non-binding outcomes and lack of clear procedural rules persist.

Keywords

Permanent Committee for Prevention and Resolution of Disputes

EPC Contracts

Oil and Gas Industry

Alternative Dispute Resolution (ADR)

FIDIC

Subjects