Analyzing the Impact of Artificial Intelligence on the Principle of Sovereignty of Will in Oil Contracts: A Case Study of Mehr Refinery, Persian Gulf

alireza barati¹

1) Master of Private Law, Private Law Department, Noorabad Mamasani Branch, Noorabad Mamasani Azad University, Iran

IOI Code : AADH-ABZDDZ
Publication : The second international conference on new researches in management, law, humanities and entrepreneurship(icmlhe.ir/2nd)
Abstract :
    This paper provides an in-depth analytical examination of the effects of AI technologies on the fundamental principle of the sovereignty of will in complex and long-term oil contracts. With the emergence and increasing penetration of advanced AI systems at various stages of the oil contract life cycle—from negotiation and drafting to execution, interpretation, and dispute resolution—traditional and long-standing legal concepts such as common intention, contractual freedom, balance of obligations, and good faith have faced unprecedented challenges and opportunities. The case study of this research is the massive Mehr Refinery Project in the Persian Gulf, which, as one of the largest and most complex projects in the oil and gas industry in the Middle East, provides an ideal setting for a field study of this dynamic interaction. The findings of this research, which were collected using an analytical-descriptive method and based on library and document studies, show that AI has a dual and paradoxical impact. On the one hand, by increasing accuracy, transparency and optimization in information processing and risk modeling, it allows for a more objective and efficient realization of the real will of the parties and can lead to better contractual balance. On the other hand, by creating deep information asymmetries, inexplicable complexity of algorithms (the black box problem), and increasing dependence on external data and platforms, it potentially undermines the independence, equality and sovereignty of human will. In the case study of Mehr Refinery, this tension is revealed in areas such as determining pricing indicators, managing supply risks and monitoring the implementation of EPC contracts. The article ultimately concludes that the principle of sovereignty of will in the age of AI should not only not be considered obsolete, but also needs to be redefined, evolved and strengthened in a new framework. The need to develop hybrid legal-technical frameworks, including specific safeguards in contracts and investing in local capacity building to maintain ultimate control and human interpretability are among the proposed solutions. The future belongs to smart-human-centric contracts, in which technology serves to fulfill the informed and fair will of the parties.

Keywords : artificial intelligence sovereignty of will oil contracts smart contracts blockchain mehr refinery persian gulf