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This dissertation was written as part of the MSc in International Accounting, Auditing and Financial Management at the International Hellenic University. For at least two decades transfer pricing has become more and more challenging to both multinational enterprises and ta x authorities. In case of the multinational enterprises, in planning and implementing their global operations due to the globalized world economy , since they have to comply with laws and administrative requirements that may differ from country to country . In case of tax administrations, specific problems arise at both policy and practical levels. In the context of this dissertation project is going to be presented how the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations and local Transfer Pricing rules affect the pricing of intra group transactions. A relevant example from Oil and Gas Industry has been used in order to give a better understanding on how these rules apply. A company and an industry analysis provide details for the company and the whole environment in which the company operates. Further on, the intragroup transactions are being presented along with a functional analysis in order to identify factors that affect the aforementioned transactions. Afterwards, the relevant legislation is presented and Transfer Pricing methods are outlined. Subsequently , in the economic analysis, the most appropriate transfer pricing method is selected in order to evaluate whether or not the intragroup transactions are within the arm’s length range . Finally, an overall conclusion is drawn on how Transfer Pricing rules can be used to examine the appropriateness of the taxable base of an entity that engages in intragroup transactions through the examination of its profitability with the use of the applicable methods. All data used, was from Amadeus database as well as from the financial statements of LPC S.A . Additional information was obtained from the OECD Guidelines for Multinational Enterprises and Tax Administrations . Moreover, information from the international and domestic press and scientific websites.