Buyback contract is one of the most common Iran's contracts, particularly after the Islamic Revolution, which has many pros and cons.One of the common problems refers to the lack of technology transfer through these contracts. Opponents claim that this type of contract agreements due to their structure, don't have enough ability totransfer technical knowledge and complete transfer to the host country .In contrast, proponents believe that the contract is not wrong to be in the contract, provisions concerning the transfer of technology and know-how in terms of technology transfer and other sources. This paper has attempted, while explaining this challenge, to explore technology transfer weakness in the oil industry and the effectiveness of their oil contracts in this area. The results show that in addition to the lack of incentives in the technology sender companies, problems related to lack of absorptive capacity for technology acquisition and transmission problems in the country as well as the factors influencing technology development in Iran.While the traditional approaches to the development of technology transfer through foreign investment and contracts with international oil companies, according to the presence of multiple actors in the technology market in the oil industry could be fertile ground for technology development in the country