This Research paper addresses the topic of "Libyan Exploration and Production sharing agreement" in comparison with the "Iranian buy back contract". This thesis discusses at length, the legal developments of "petroleum agreements" in both the states from the beginning of concession era until the discontinuation of the countries' commitment to those arrangements as a result of the overthrow of the Monarchical Government in Libya in 1969 and in Iran in 1979. The thesis also analyses respective Governments' strategy of eliminating or preventing international oil companies (IOCs) controlling the petroleum industry with the need for the knowledge, experience and finance of those companies. The thesis also give stress on both types of contracts to the IOCs, the essential legal differences between the Libyan EPSA (Exploration and Production Sharing Agreement) and the Iranian BBC (Buy Back Contract) etc. The thesis mainly focuses on the two methods of contracting: Exploration Production Sharing Agreement (EPSA) and the Buy Back Contract (BBC). The EPSA was devised as a government vehicle in 1973 to achieve the main objective to control the oil industries, while at the same time to obtain foreign finance and technology. Of a similar approach, the Iranian government adopted Buy Back Contract (BBC) to obtain the necessary foreign services, capital and expertise, while also restricting and preventing the direct involvement of IOCs in the petroleum industry as required by certain Articles of the Iranian Constitution, including 44, 45, and 81. The governments in both Libya and Iran, following the Revolutions, attempted to become more self-reliant in developing the petroleum industry and keeping foreign involvement to a minimum so far as control of oil industries are concerned. But since nationalistic ambition did not bring desired economic results, both governments are forced to modify their respective policies and types of contract to include terms that were favourable or attractive to IOCs. However, despite of such vital improvements, these contracts still appearing to be unattractive and inconsistent, with implications that would continue to affect the parties to the contract. A number of defects still exists in the method of contracting which needs to be resolved in order to render the business environment in their petroleum industry more attractive. The thesis consists of eight chapters, with chapter one introduces the topic and outlines the main arguments that will be dealt with in the thesis. Chapter two provides the historical background to the petroleum industries. Chapter three examines briefly the Libyan political background. Chapter four focuses on the historical developments of the Libyan oil industries. Chapter five is entirely devoted to consideration of the development of the EPSA in Libya. Chapter six examines the historical developments of the petroleum industries in Iran in the post-war period, beginning with the nationalisation policy in 1951. This chapter also discusses the legal basis and contractual structure of the Iranian BBC. Chapter seven critically analyses the main terms of both the Libyan EPSA IV, the latest BBC in place and the Iranian BBC contracts. Chapter eight summarises the major findings of the study.