Oil and gas development projects are characterized by large capital investments which include a clear determination of the risks and rewards of each investment opportunity. In every project, there are possible risks always present. The success of a project would depend on how these risks are allocated and efficiently managed. It is necessary for oil and gas upstream sector in developing countries to provide an investor-friendly environment towards provisions of numerous incentives to investors. Therefore, in this research an integrated risk management framework has been proposed to the establishment of a stable and secure environment to reduce risk and promote opportunity through the implementation of suitable regulatory terms and conditions for exploration and production work. Also, a notable structure is presented to identify, analyze, quantify, allocate and mitigate different risks. This package can help the project sponsors to design more flexible and innovative financings, involving a range of partners from both the public and private sectors, and attract significant investments.

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