Preface:
The Law on Maximum Use of Iranian Technical, Engineering, Manufacturing, industrial and Executive Capability for Implementation of Projects and Provision of Facilities Required for Export of Services, shortly called Maximum Utilization” or “51% Local Content” law, has become a much debated and controversial issue amongst foreign and local companies involved in the activities in Iran. The concept dates back to some 10-11 yeas ago when Iran’s oil and gas projects were made available to foreign companies for development. Then, the law was manifested only in the annual budgets of the country for couple of years, wherein 30% of the tasks were foreseen to be allocated to local companies to create job opportunities and help transfer advance technology into Iran as well. Later, however, it was transformed into a law that was finally passed by Iran’s Majlis in the early days of March 1997. In order to provide interested companies with all that relates to the issue, IranOilGas.com has prepared a report that includes an authentic English translation of the law, the relevant executive directives, its analysis and also comments of the concerned authorities and those of the executives of certain private companies on this contentious subject. The report is an attempt to elaborate the objectives of the law and also the obstacles local firms, and consequently their foreign partners, face in the implementation of the law. Among many other topics, the report also includes the list of many of Iranian EPC contracting companies of different categories approved by the State Management and Planning Organization. For further enlightenment, please find hereunder the table of contents of the report.