Oil, an integral part of the contemporary global economy, is considered a driving force behind the 2003 invasion of Iraq. Hydrocarbon reserves in Iraq have a significant role to play in global supply, with oil revenue accounting for more than 90% of Iraqi government income.
This book provides a comprehensive insight into the key foundations of Iraq’s oil industry and assists in the development of a core area of domestic law to promote economic recovery following years of instability. It addresses the development of oil legislation and the formation of contracts since the US and allied occupation of Iraq in 2003. Legislation is assessed against the framework of the constitution along with the different types of oil agreements and their terms. The book looks at three main aspects of oil legislation, beginning with the validity and interpretation of the constitution as any subsequent legislation governing oil policy will be based upon this. The work then discusses whether the draft oil and gas law of 2007 and any subsequent oil legislation, including the law implemented by the Kurdish Regional Government in 2007, is valid. Finally, the book analyses the legitimacy of oil agreements entered into by the central and regional governments and whether these contain terms beneficial to the state and contracting party.
Providing an in-depth analysis of the origins and development of the legal framework of the oil industry in Iraq, the book acts as both a reference source and a springboard for future research across a range of legal, economic and policy perspectives. It will appeal to practitioners and academics working in energy law and international investment law, as well as policy-makers, legal advisors and those working in governments and energy companies.
By:
Janan Al-Asady
Imprint: Routledge
Country of Publication: United Kingdom
Dimensions:
Height: 234mm,
Width: 156mm,
Weight: 660g
ISBN: 9780367149697
ISBN 10: 0367149699
Series: Routledge Research in Energy Law and Regulation
Pages: 232
Publication Date: 14 June 2019
Audience:
College/higher education
,
Professional and scholarly
,
Further / Higher Education
,
Undergraduate
Format: Hardback
Publisher's Status: Active
Foreword Acknowledgements Abbreviations and acronyms PART I 1 Introduction 1.1 Research methodology 1.2 History 1.3 Politics 1.4 Economic policy 1.5 Legal issues 1.5.1 Ownership and sovereignty of oil 1.6 Constitution 1.7 Oil legislation 1.7.1 The draft oil laws 1.7.2 Oil concessions 1.8 Current agreements 1.9 Research 1.10 Conclusion 2 Sovereignty and ownership of oil resources 2.1 Introduction 2.2 Ownership 2.2.1 Definitions 2.2.2 Key concepts relating to natural resource ownership 2.2.2.1 Property rights 2.2.2.2 Authority of the state 2.3 The legal concepts of property ownership and sovereignty 2.3.1 Islamic law concepts underlying natural resource ownership 2.3.2 The principle of Permanent Sovereignty of Natural Resources (PSNR) PART II 3 Historical background to 2003 3.1 Historical backgrounds 3.2 The first oil companies in Iraq, oil concessions and discovery 3.3 Recent history 3.4 Land ownership in Iraq and sovereignty 3.4.1 The Ottoman laws 3.4.2 Sovereignty and nationalisation 3.5 Ownership of Iraqi oil reserves post-2003 3.5.1 Federalism 3.5.1.1 The meaning of federalism, definitions and implications for Iraq 3.5.1.2 The formation of a federal state 3.5.2 CPA orders and transitional provisions 3.5.3 The 2005 electoral process and subsequent developments 3.5.4 The 2005 Constitution 3.5.4.1 Comments on legal opinion provided to the KRG 3.5.4.2 Analysis of Article 112 3.5.4.3 Constitutional ambiguities and the section on federal powers 3.5.5 Future implications of federalism on oil revenues 4 The legislative framework of the Iraqi oil industry 4.1 Current laws governing the oil industry 4.1.1 Pre-2003 4.1.2 Post-2003 4.1.2.1 The TAL 4.1.2.2 The Constitution – oil, disputed territories and related issues 4.1.3 The Kurdish region 4.2 The Federal Draft Oil and Gas Law (DOGL) and revenue sharing 4.2.1 Definitions 4.2.2 Purpose and application of the law 4.2.3 Control and management of resources 4.2.4 Contract review provisions 4.2.5 INOC 4.2.6 Field development 4.2.7 Mechanisms of negotiation 4.2.8 Model contracts 4.2.9 Licences and obligations of licence holders 4.2.10 Unitisation of fields 4.2.11 Gas 4.2.12 Transportation 4.2.13 Protection of resources 4.2.14 Inspection 4.2.15 Petroleum returns and financial obligations 4.2.16 Conflict resolution 4.2.17 Transparency 4.2.18 Final provisions 4.3 Tender process 4.3.1 Law currently governing tenders 4.3.2 Bid process 4.3.2.1 Pre-selection 4.3.2.2 Bid rounds 4.3.2.3 Development of the bid rounds 4.4 Transparency of the law 4.5 Conclusion 5 The contractual framework for Iraq’s oil industry 5.1 Introduction 5.2 Contracts typically used in the industry and common terms 5.2.1 Concession agreements 5.2.2 Production sharing contracts 5.2.3 Service contracts 5.2.3.1 Risk service contracts 5.2.3.2 Technical service contracts 5.2.4 JVs and joint operating agreements 5.2.5 Licences 5.2.6 Farm-out agreements 5.2.7 Common clauses 5.2.7.1 Participation agreements 5.2.7.2 Buy-back agreements 5.3 Oil agreement structures in Iraq 5.3.1 Technical service contracts 5.3.2 Development and production technical service contracts 5.4 Key contractual provisions 5.4.1 Fundamental provisions 5.4.1.1 Term and participation 5.4.1.2 Minimum work obligations 5.4.1.3 Phases 5.4.1.4 Production targets and relinquishment 5.4.2 Assignment and subcontracting 5.4.3 Signature bonuses and exclusivity clauses 5.4.4 Measurement policies (SOMO and MoO) 5.4.5 Taxation 5.4.6 Investor returns – cost recovery and remuneration 5.4.7 Title to and use of assets 5.4.8 Force majeure 5.4.9 Stabilisation 5.4.10 Technology transfer 5.4.11 Dispute resolution 5.4.12 Termination 5.5 The KRG PSCs 5.5.1 Legitimacy 5.5.2 Governing law and dispute resolution 5.5.3 Key terms 5.5.3.1 Bonuses 5.5.3.2 Participating interest 5.5.3.3 Government revenues 5.5.3.4 Cost recovery 5.5.3.5 Assignment and subcontracting 5.5.3.6 Relinquishment and decommissioning 5.5.3.7 Termination 5.6 Differences between the PSCs and the TSCs 5.7 Conclusion 6 Conclusion Recommendation Appendix 1: Covenant of the League of Nations Articles I and XXII Appendix 2: Maps of Iraq Appendix 3: Table of oil fields and companies in Iraq 2016 Bibliography Index
Janan Al-Asady, PhD, is a commercial Barrister in London, UK.
