Iraq Government News > Alsumaria News publishes oil and gas law, submitted to the House of Representatives

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Alsumaria News publishes oil and gas law, submitted to the House of Representatives

Wednesday, 17 August 2011 10:35 GMT Alsumaria News / Baghdad

Alsumaria News", Sunday, a copy of the oil and gas law, submitted to the House of Representatives, according to the provisions of item (I) of Article (61) and item (iii) of Article (73) and articles (111) and (112) of the Constitution .

This law aims to "policy-making strategy for the organization and development of petroleum industry extraction in order to achieve the highest benefit to the Iraqi people and in line with those reported in the Federal Constitution, and management of petroleum operations in order to achieve the highest benefit to the Iraqi people, and to ensure coordination and partnership between the federal government, regions and producing provinces in the management and development Petroleum sources in order to achieve the national interest in any phase of petroleum operations, and access to the highest level of growth in reserves and production, and maximize the financial resources of Iraq through the best investment of wealth in petroleum and maintained on the basis of technical and economic solid and rewarding.

The law seeks to "establish a modern and developed to manage the petroleum operations in Iraq, including the development of strategies, policies and plans long-and medium-and short-term consultation and coordination between the federal government, regions and provinces of oil-producing, and lay the foundations for cooperation between relevant bodies, and lay the foundations for coordination and consultation between the federal and state authorities the regions and governorates of the oil, and the expansion in the use of voltage direct public and private sectors of Iraq to the implementation of the petroleum operations in Iraq based on the latest technologies, market economy and tap the potential of institutions and foreign companies, in addition to the exchange of experiences between the Iraqi oil sector and the global oil industry.

And below the full text of the law: -

Based on what passed the House of Representatives and endorsed by the Presidency Council and the provisions of item (I) of Article (61) and item (iii) of Article (73) and articles (111) and (112) of the Constitution Act the following:

Oil and Gas Law for 2011

Part I

Basic Principles

Chapter I

Definitions

Article 1 -

The words and phrases for the following purposes of this Act shall have the meanings about it

First - The Ministry - Federal Ministry of Oil.

Second - the competent bodies - the oil ministry or the competent authority in the region or province produced.

Third - the Council - the Federal Council for Oil and Gas.

IV - the region - each region shape or form in accordance with the provisions of the Constitution.

V - Courses Licensing - the stages of the process of selecting the competitor the best and include (public announcement of patches exploratory and fields discovered but not developed, the company registered with the competent body, and the invitation for bids, opening bids, analyze, and choose the best ones for the purpose of negotiation).

VI - Oil - Crude oil, gas or oil shale or tar sands and any hydrocarbons produced, can be produced from them.

VII - crude oil - all hydrocarbons, regardless of the specific weight, which is produced from the field, liquid state when heat and pressure in the reservoir, including asphalt and tar and liquid hydrocarbons known.

VIII - exploration - the search for oil means geological, geophysical and other means and includes the drilling of exploratory wells and Altakimah.

IX - D - activities carried out by a license holder of exploration, development and production based on field development plan or plan of development of main pipeline, which aims to produce and transport oil.

10- production - oil extraction and runoff.

producing province - the province achieved the production of oil in a sustained, at commercial rates of not less than (150000) One hundred and fifty thousand barrels of oil equivalent per day.

12- petroleum operations - activities related to exploration, development, production, isolation, treatment, storage, transport and sale or delivery of Petroleum at the point of delivery or the point of export or processing points agreed within or outside Iraq.

13- carrier - the entity designated by the Board to collect the oil from the holder of licenses for exploration, development and production at the point of conversion and delivery of oil for export to the license holder of exploration, development and production at the point of delivery.

14- point measurement of production - the site or sites that are measure the sizes and quality of oil.

15- point of supply - the site that converts oil from the main pipe line or pipe line of the field to a different type of transport, processing or use.

16- Iraqi company - any company enjoys significant independent and registered in accordance with the provisions of the Companies Act to be based in Iraq and have more than (50%) fifty percent of the share capital held by Iraqi citizens or Iraqi companies public or private.

17- foreign companies - any company that does not carry Iraqi citizenship shall enjoy the moral and recorded in accordance with the provisions of the Companies Act is owned directly or indirectly, by more than (50%) fifty percent of its share capital by foreigners or foreign companies public or private.

18- Office - Office of the Federal Council of Advisors extension of oil and gas.

19- the first appearance of oil are encountered in the reservoir by drilling can be drawn on the surface in ways that the modern oil industry.

20- the development and production - part of the Contract Area is identified in the light of commercial discovery.

21- commercial discovery - the accumulation of Hedrocarbona Mhi development.

22- - field - a region that contains a reservoir or a reservoir or linked together in the same geological structure or situation Alastrutgrave includes the Earth's surface and interior.

23- - step development of the field - the program and estimate the determinants of cost evaluation and development activities required to develop and produce oil from a specific field or group of fields from the license holder of the exploration and development and production.

24_ reservoir - a petroleum pool in a separate unit specific geological characteristics of the rock and up or stratified and synthetic surfaces in contact or overlapping between the oil and water in the composition, to affect oil production in any part of this assembly on the total oil pressure in it.

25- best practices in the petroleum industry - good practices, safe and environmentally friendly, economic and effective participation in oil exploration and production.

26- gas - is the status of hydrocarbons that are gaseous at the temperature and pressure in the reservoir, whether associated with the liquid hydrocarbons or non-companion, as well as gas remaining after extraction of liquid hydrocarbons from the reservoir.

27- associated gas - gas that is dissolved in the reservoir in a liquid or Haedrokrbone in the dome above the oil and gas in contact with the crude oil.

28- non-associated gas - free gas when the situation of gas temperature and pressure in the reservoir.

29 - The main pipe line - system engineering, including pipelines, valve stations, pumping stations and stations, baling facilities, and its built from the carrier or holders of licenses for the transfer of oil from a field or several fields or sources inside Iraq or outside the field except pipelines.

30_ field line pipe - pipe group that collects crude oil or gas from a field or group of fields to be delivered to the transfer point for the transfer of overtime, including valve stations, pumping stations and pressing stations and associated facilities.

31 - point conversion - the entrance flange of the pipeline beyond the point of measurement of output.

32- delivery point - a point or access points to the lip of the entrance to the oil tank vessel or a point agreed upon in the exploration, development and production inside or outside Iraq.

33- الأساليب best practices for managing a network of pipes - good practices and the guarantor and appropriate to the environment, economic and effective in the transfer of oil.

34- - holders of licenses - Iraqi or foreign company or group companies or any form of alliance for the purpose of contracting in the oil field in Iraq.

35- Contract Area - the region that the holder of licenses for exploration, development and production, including authorized the exploration and development and production of oil.

Chapter II

Objectives and scope of force

Article -2 -

This law aims to the following:

First - the strategic policy for the organization and development of oil extractive industry so as to achieve the highest benefit to the Iraqi people and in line with those reported in the Federal Constitution.

II - Operations Management petroleum in order to achieve the highest benefit to the Iraqi people.

Third - to ensure coordination and partnership between the federal government, regions and producing provinces in the management and development of petroleum resources in order to achieve the national interest at any stage of the petroleum operations.

IV - to reach the highest level of growth in reserves and production.

V - to maximize the financial resources of Iraq through the optimum use of petroleum wealth and maintain the technical and economic foundations of solid and rewarding.

VI - Insurance technology, training and staff development of the Iraqis in the industry.

VII - the optimal use of infrastructure, development and environmental protection.

VIII - the auspices of the Iraqi private sector and enable it to be effective and competent and able to contribute substantially to the petroleum operations.

IX - to ensure the professionalism and the technical and economic eligibility for full license holders and dealers of the Iraqi private sector and foreign investment in this area and in accordance with international standards.

Article 3 -

This law seeks to achieve its objectives the following means:

First - the establishment of a modern and sophisticated management of petroleum operations in Iraq, including the development of strategies, policies and plans long-and medium-and short-term consultation and coordination between the federal government, regions and oil-producing provinces.

Second - laying the foundations of cooperation between the competent bodies.

Third - to lay the foundations for coordination and consultation between the federal and provincial authorities and the provinces of Petroleum.

IV - Expansion in the use of direct effort in the public and private sectors for the implementation of the Iraqi oil operations in Iraq based on the latest technologies, market economy and tap the potential of institutions and foreign companies.

V - Exchange of experiences between the Iraqi oil sector and the global oil industry.

Article 4 -

This law shall apply to petroleum operations in the occupied land and inland waters, territorial waters and exclusive economic zone and below in all parts of the Republic of Iraq, and in any part subject to Iraqi law under an agreement or international law or international norms.

Article 5 -

First - A council called the Council of the Union of oil and gas and consists of:

A - President of the Council.

B - Vice-President of the Council - members.

C - oil minister - a member of.

D - Finance Minister - Member.

E - Minister of Planning and Development Cooperation - a member of.

And - three independent experts, professionals of the affairs of the oil and gas, finance and the economy - the members.

G - a representative of each region or province produced irregularly on the territory of experienced and competent - the members.

Second - will be nominated president and his deputy and three independent experts from the Presidency of the Council of Representatives and endorsed by the Council by absolute majority of its members.

Part II

Petroleum resource management

Chapter I

اPowers

Article 6 -

The following parties petroleum resource management, each according to its competence and in accordance with this Law:

First - House of Representatives.

Second - Council of Ministers.

Third - the Federal Council for Oil and Gas.

IV - the oil ministry.

V - a representative of all regions.

VI - a representative from each province produced.

Article 7 -

The Council of Representatives the following:

First - Enacting federal laws related to the operations of the oil sector.

II - Approval of the international conventions related to the petroleum sector.

Article 8 -

The Council of Ministers the following:

First - make a recommendation to the Board of Deputies for the draft laws proposed for the discovery and development of petroleum resources.

Second - to ensure that the Council and the Ministry of the adoption of appropriate and effective means for consultation and coordination with regional bodies and oil-producing provinces in order to achieve the objectives of this law.

Article 9 -

First - The Board shall the following:

A - Federal policy-making petroleum and general plans for exploration and field development plans and the main pipe and adjusted.

B - The criteria for issuing instructions to negotiate and contract for the granting of licenses or contracts for the development, production, and the eligibility criteria for companies.

C - the preparation of model contracts exploration, development and production in accordance with the standards contained in this Act, approval and amendment, adoption, according to the classification of fields or areas of exploration-built to achieve the highest benefit to the Iraqi people.

D - a study of contracts for exploration, development and production licenses granted by the competent body to carry out petroleum operations and deciding where and adjusted according to the mechanism provided for in Article (18) of the Act.

H - Approval of the transfer of shares among holders of permits and subsequent modifications in accordance with the mechanism provided for in Article (18) of the Act.

And - coordination between the competent bodies for the development of an exploration program in Iraq in order to verify the oil and gas reserves and offset production and add new reserves.

G - coordination with the competent bodies in order to ensure the development and exploitation of petroleum resources in the interests of the Iraqi people in accordance with the provisions of laws and regulations and contractual requirements and standards.

H - the national level to determine the oil production as appropriate national policy, to apply those selections in a fair and just on the basis of the proportion of contracted production for each region based on the approved plans to develop the field.

Second - Council will meet at the invitation of President or Vice President in the absence of the President once a month at least, and take its decisions by a majority of two thirds of members in the development of petroleum policies, plans and contract forms and instructions to negotiate and decide on the contracts, as set out in Article (18) of the Act.

III - The formations of the Council and the divisions and functions of the system, the Council issued an internal two-thirds majority of its members.

Fourth - the end of the period in paragraph (e) of item (I) of Article (13) of this Act, the Council decides responsibility for the management and operation of oil and gas pipelines and the main ports of export.

Article -10 -

First - is called the Council office (Office of independent advisers) The study of decades of exploration and development, production and development plans for oil and gas fields, and any other matters related to this, and to provide advice and recommendations in such matter to the Council.

Second - The office includes a number of Iraqi and foreign experts in the field of oil and the law, Council shall determine the number and selected two-thirds of the members of the Board and are contracted with them for three years can not be extended.

Article -11 -

The Ministry of Oil as follows:

First - Proposed policy, laws and plans of petroleum.

Second - the number of draft regulations and the issuance of instructions and data for the implementation of policies, laws and plans of oil and brought to the Board for approval.

III - Monitoring and supervising petroleum operations in the light of relevant legislation and contractual terms and international standards adopted in coordination with other relevant bodies to ensure the uniform implementation and application of heterogeneous petroleum policy in all parts of Iraq.

. IV - Proposing programs and methods will be most successful in the development of fields discovered and developed and presented to the Board for approval.

V - the number of draft policies and plans of the Federal targeted for exploration, development and production deal with determining the levels of production necessary in the short and long term, and to reach optimal solutions for the geographical distribution and timing of curriculum exploration and development, production, consultation and coordination with other competent bodies, and submitted to the Council for review and approval.

VI - Proposal to the Council a comprehensive plan to explore for oil and gas in all parts of Iraq in consultation with other competent bodies, classification of areas according to the petroleum prospects.

VII - the participation in the number of models of decades of exploration and development, production, collaboration and coordination with other competent bodies, each according to his responsibility specified in this law.

VIII - Audit costs and expenses incurred by the holders of licenses with other competent bodies.

IX - to negotiate with other countries and international and regional organizations in the Shan relevant international conventions and in accordance with the law.

X. - representation of the Republic of Iraq in regional and international forums in matters of oil, according to law.

Article -12 -

The competent bodies shall supervise the implementation of contracts for services, processing of petroleum operations, which graduated from the scope of contracts for exploration and development and production, according to the laws in force.

Article -13 -

First - The Iraqi oil company as follows:

A - management, operation and development of producing fields, the current determined by the Board, through its subsidiaries.

B - development, production and operation of the discovered fields and undeveloped assigned to it by the Council.

C - participate in the exploration, development and production in Iraq and on a competitive basis in sessions of the licenses.

D - to carry out exploration and development, production, transportation, storage, marketing and sales in accordance with the provisions of this law.

E - Network management and operation of oil and gas pipelines and major export ports in Iraq and enter into contracts for oil and gas shipping until the completion of the reorganization of the common carrier pipelines for up to two years from the date of entry into force of this law.

II - to Iraqi oil company is to achieve its purposes, the following:

A - Contribute as a trading partner in international contracts associated with the transport, marketing and sale of oil and gas exploration and development contracts and production out of Iraq after obtaining the approval of the Council of Ministers.

B - the establishment of subsidiaries and wholly-owned areas are selected on the basis of the existence of oil fields and the volume of oil and gas reserves and production capacities and to achieve feasibility, or upon the reorganization and the distribution of tasks between the companies list, according to the workload and in order to increase efficiency and benefit the Iraqi people.

C - the establishment of companies operated with other companies or own shares in companies inside and outside Iraq, after obtaining the approval of the Council of Ministers.

D - have movable assets and immovable property and material and moral rights belonging to the people according to natural or moral law.

Article -14 -

The competent bodies in the regions as follows:

First - suggested activities and plans on behalf of the regions in preparation for inclusion in the plans of the Federal Oil Operations, and assist federal authorities in the consultations for the completion of those plans.

II - actions sessions licenses related to the activities of petroleum in the regions in the field of exploration, development and production fields discovered but not developed in accordance with the mechanisms provided for in Articles (15) and (16) and (17) of this Law and in the presence of experts from the independent consultants determined by the Council.

III - Cooperation with the Ministry to implement the provisions of item (III) and (VII) and (VIII) of Article (11) of the Act.

IV - to negotiate and conclude contracts mechanisms in accordance with stipulated in article (18) of the Act.

V - Monitoring and supervision of the oil operations and audit costs and expenses of companies operating in the region in order to ensure uniform implementation and application of heterogeneous petroleum policy in all parts of Iraq in accordance with instructions issued by the Council.

Chapter II

Licenses

Article -15 -

for an Iraqi company or foreign on the basis of exploration, development, production, contract development and production contract with the Ministry or the Regional Authority and an Iraqi company or foreign company, specifying the eligibility technical and financial capacity in accordance with the eligibility criteria for companies set by the Council and in accordance with mechanisms negotiate and contract stipulated in Article (18) of the Act.

Second - take into account in the granting of licenses for the operations set forth in item (I) of this Article, the following principles:

A - respect for the sovereignty of national interest.

B - the adoption of weighting method for the selection of qualified candidates through a competitive licensing courses are based on clear conditions.

C - include the letter of invitation to contract the main items of the contract model.

D - that includes a model contract that grants the license under which the characteristics and requirements of each area or field, or an opportunity is presented, and private data sources as if they discovered or undiscovered, risks and potential benefits and challenges of technological and operational.

E - The company should be qualified in accordance with accepted principles in the petroleum industry.

And - that is the selection and classification of applicants accepted on the basis of the quality and effectiveness of the proposed work plans and the economic benefit of Iraq.

G - The competent bodies of the text of the announcement of contracts for exploration and development, production and development contracts and production within a period not exceeding (60) days from the date of its ratification by the Council.

Article -16 -

Include model contracts for petroleum operations of the following criteria:

First - of national sovereignty.

Second - the ownership of Iraq's petroleum resources.

Third - the maximum return on national economic.

IV - waiver of the license holder for unused land within the Contract Area in accordance with contractual terms.

V - the right of return for the investor in accordance with the provisions of this law.

VI - Obligations of parties to the contract and the resulting breach.

اVII - the arrangements and conditions for the exercise of rights relating to the data.

VIII - Features and granting specific incentives for the Iraqi companies service.

IX - the maximum extraction of oil.

10- - transfer of technology.

11- Training and staff development in the field of oil from the Iraqis.

12- the optimal use of infrastructure and development.

13- plans and solutions that ensure the protection of the environment.

Article -17 -

Committed to the competent bodies of the provisions of this law and the relevant instructions issued by the Council when granting licenses.

Chapter III

Mechanisms of negotiation and contracting

Article -18 -

First - the competent bodies, each according to its competence and responsibility, and after the completion of the initial actions of the sessions of the licenses, the initial contract signed licenses with the license holder who is chosen.

II - referred to the initial contract concluded in accordance with the provisions of item (I) of this article to the Council within thirty (30) days from the date of signing the initial contract was for a decision according to the procedures set forth in item (iv) of this Article.

III - The initial contract referred to in (ii) of this Article shall take effect in the absence of objection the Council.

IV - the Council when making decisions regarding the contracts submitted to him by the competent bodies of the following steps:

A - assignment of a contract to the office of independent advisers to study the bill and the statement of opinion on the conformity of the models of the licensing contracts approved by the Council and the instructions issued by him and the organization of the petroleum operations and make recommendations on the matter.

B - in the event of substantial violations of the contract for the contract forms and instructions issued by the Council, the Council issued a resolution objecting to the contract, guided by the recommendations of the Office of independent advisers if the contract is agreed with the principles of the model contract.

C - the competent authority of the Council decision of objection and the reasons for such objection within (60) sixty days from the date of receipt.

D - in the event can not be convened by the Council (60) days referred to in (B)/> and © above of this Article, the President of the Council shall inform the party that transmitted the initial contract extension period (45) additional days, its end is the contract in force.

V - to the competent bodies addressing the causes of objection to the contract formulated by the Council through amendments to the initial contract and submit again to the Council.

VI - In case of survival of objections continue the procedures referred to in (iv) of this Article and otherwise the contract is in force.

Article -19 -

For the purpose of ensuring transparency and equal opportunities for all competitors, including the provision of public bidding of the notice with a statement sufficient grounds under which the tender is awarded, and must publish the results and reasons for selection, while providing an opportunity for other competitors to object to the referral for consideration.

Article -20 -

First - is committed to the oil companies operating in Iraq to announce public tender on a competitive basis at the request of any offers of goods or services in accordance with instructions the execution of contracts.

Second - the announcement of the bids from holders of licenses on a competitive basis, consistent with the terms of the contract and international standards.

Third - the public tenders include the provision of adequate notice of the statement of grounds under which the tender is awarded, and must publish the results of the tender and the reasons for his choice and provide an opportunity for competitors to challenge others to transmit it.

IV - is the request of any offer or conclude any contract contrary to the provisions of this Article, void or arrange an impact.

Part III

Petroleum operations

Chapter I

Exploration and development, production and marketing

Article -21 -

First - really gives the license contract to the contractor to carry out exploration, development and production of oil or some of them in the contract and move.

Second - The period of exploration, development, production and marketing in the model contract as follows:

A - initial period of not more than four (4) years, during which the license holder performs all its obligations in accordance with a schedule determined by the contract.

B - in the contracts, which include exploration, the competent body granted additional time if this is warranted, based on a commitment holder licensing program and quality of work that the extension does not exceed two years.

C - are the periods set forth in paragraphs (a) and (B)/> of this section the terms of the contract according to the retrieval of the model contract.

D - the Contracting Authority granting licensee exploration, development and production for a further period of not more than (2) two years in the case of discovery for the purpose of evaluating or determining the commercial value of the discovery, and for a period not exceeding (4) years in the case of the discovery of natural gas is a companion and a period of not more than ( 2) two years to complete the evaluation of the discovered fields is developed in the decades of development and production.

Third -

A - for holders of licenses and the retention of exploration development and production of oil within the area of ​​development and production for a period to be determined by the competent authority that not more than twenty (20) years from the date of approval of the development of the field.

B - the Commission may adopt in determining the appropriate period specified in paragraph (a) of this section on the data associated with the best extraction of oil and the best use of existing infrastructure.

C - the competent body and the technical and economic considerations to extend the contract for a further period not exceeding five (5) years on terms to be negotiated again in all cases are restored, the area outside the area of ​​development and operating license at the end of exploration, development and production.

D - defines the contract to recover any part of the development zone in the non-compliance with the terms of the license holder of the contract.

IV - Approval of the appointment is the operator of the competent authority in accordance with the recruitment procedures set forth in the initial contract and based on the criteria and instructions issued by the Board.

V - oil marketing and investment on the basis of achieving maximum benefit from the returns of the value of alternative opportunities.

Chapter II

Obligations of license holders

Article -22 -

Abide by the license holder shall:

First - to petroleum operations in accordance with the provisions of this law and legislation in force and petroleum systems and best practices in the petroleum industry.

Second - to inform the competent authority for any discovery within the Contract Area.

III - Identify and evaluate the discovery and appreciation of commercial value and the poetry of the Ministry in writing stages of the work and results.

IV - the number of field development plan in the case of commercial discovery and modification.

V - the application of a plan to develop the field or the current amendments when adopted by the competent bodies.

VI - compensate affected parties for any loss or damage resulting from carrying out petroleum operations in accordance with the law.

VII - to provide support to Iraqi institutions to participate in services and development of petroleum operations.

VIII - to provide the competent bodies of free data collected through the petroleum operations in accordance with the provisions of this law and petroleum regulations.

Article -23 -

The holder of the license subject to the following:

First - give preference in the purchase and use of products and services determined by the proportion of the Iraqi Council taking into account the quality and quantities required and the times of assessment.

Secondly - the use of Iraqis who have experienced the necessary qualifications and training.

Third - To increase opportunities for training and development and technology transfer to the Iraqis and Iraqi institutions with regard to all phases of petroleum operations, including management.

Article -24 -

First - is committed to holders of licenses when they manage petroleum operations, including the following:

A - taking into account the legislation relevant to the protection of the environment and prevent pollution.

B - Compliance with environmental management standards set forth in the applicable laws.

C - The lack of damage or destruction of the ecosystem as a result of petroleum operations.

D - to report on the size of the environmental impact of each process petroleum and measures that can mitigate this effect to the concerned authorities for approval.

E - poetry the relevant bodies immediately of any emergency or accident affecting the environment.

And - control the flow and prevent leakage or loss of oil, which was discovered or produced within the Contract Area and to provide reports to the competent body in the Shan amount of flow, operational and accidental leakage of petroleum operations.

G - not to damage oil reservoirs.

H - cleaning up after the end of the commissioning and closure of petroleum operations and taking into account the requirements of the rehabilitation of the environment.

I - to take the necessary preventive measures to ensure the safety of workers.

J - compensate those affected by the activities of the petroleum operations in accordance with the law.

K - address the contaminated water and waste oil under the laws in force and internationally approved methods, as well as security and closure of all wells and other wells Alvhsah before leaving.

Secondly - Without prejudice to any penalty provided by law, necessary violates the provisions of paragraphs stipulated in item (I) of this article the performance of compensation in accordance with the legislation and international standards.

Chapter III

Consolidation of development and production in the common fields

Article -25 -

First - the development is the approval of the Council on the measures necessary to protect the interests of the Iraqi people, in the case of the discovery of petroleum-producing areas stretching from the authorized production areas to the unauthorized.

Second - Council of Ministers take the necessary measures to protect the interests of all the Iraqi people and discoveries in the fields of petroleum, which extends beyond Iraq's borders.

Thirdly - is developed and operated jointly in the case of the discovery of a petroleum field is located in more than one contract area in Iraq, according to the unification agreement within Iraq that need to be holders of licenses to the competent bodies concerned to decide by then be forwarded to the Council for adoption.

Fourth - when licensees fail to reach agreement on the terms of unification within the (180) one hundred and eighty days from the date notified to submit the agreement, then forwarded to the Council to take action in accordance with the mechanisms in place globally in the global industry.

Chapter IV

Gas exploitation

Article -26 -

First - is to deal with the gas as an important source of petroleum can be used in particular for the following purposes:

A - Gas Injection in the appropriate reservoirs to improve oil recovery when needed.

B - electric power generation.

C - chemical and petrochemical industries.

D - household uses.

E - industrial processes.

And - export and replaced by liquid fuel.

Second - holders of licenses required to achieve optimum use of excess quantities of gas produced in accordance with the purposes set forth in item (I) of this Article or delivery of excess quantities of gas to the party specified by the Board at no cost at the borders of the field according to the plan approved by the Board to do so.

Article -27 -

First - for holders of licenses to use the required quantities of gas, petroleum operations required to do so without charge.

Second - The holders of licenses within the field development plan, proposed plans for the optimal use of gas or dispose of it.

Third - recognizes the associated gas that is produced from the reservoir, which is not used in the petroleum operations to the competent body without charge.

Article -28 -

May not be burning gas, except in cases of launch and testing facilities and safety precautions or during the waiting period is complete, gas transmission facilities during the period specified in the contract quantities to be burned to a minimum under the contract, and is informed the competent authority to do so.

Article -29 -

Subject to development and production of gas or liquid components of it resulting from the discovery of non-associated gas to the approval of the competent authority on a plan to develop the field and in the case of oil production means only, you must submit a plan to the competent body of the re-injection of gas or any other acceptable plan for the disposal of it.

Chapter V

Transport

Article -30 -

First - the ownership of pipelines, current home of the Federal Government.

Second - the carrier is required to transfer oil Contracting Party with the competent authority in accordance with reasonable commercial standards, and therefore require the following:

A - to be the absorptive capacity of the pipeline is available.

B - that there are no technical problems can not be overcome prevent such use of the pipeline.

C - to establish the competent bodies systems to use the license holders for pipelines.

Third -

A - standard commercial dispute shall be referred to the transfer of oil in the main pipe line or pipe line of the field of oil or gas or the provision of unused capacity in the pipeline or on the proposed increase of its capacity, to the competent body to resolve it.

B - When you can not be reached to resolve the dispute shall be resolved by the Board and his decision shall be prohibited.

IV - The Council shall establish general rules of the common transport in pipelines major current and future standards according to the global petroleum industry.

Article -31

A - ownership, management and operation of major pipelines - the point specified by the Board.

B - is the establishment and operation of pipelines field by licensees.

C - The carrier specified by the Board transfer the oil and gas to delivery points and the specific design, operation and maintenance of a network of pipelines to serve the main requirements for the transport of oil inside and outside Iraq.

Second - The establishment and operation of a major pipeline or make any major amendments to the approval of the Council on the basis of the development plan be formulated for this purpose.

Third - the holders of licenses to hand over oil to the pipeline at the point of the main points of diversion or occasion.

IV - The competent bodies responsible for the organization overseeing the operations relating to the transfer of oil through pipelines outside the territory of Iraq to the point of export.

V - is the performance of all the activities provided for in this Article according to the best methods to manage the network of pipes.

Article -32 -

First, - contract shall be awarded exploration and development, production, access to the main pipeline reasonable commercial terms, the right of establishment and operation of pipelines to deliver oil field or gas from the Contract Area to the point of conversion in preparation for the transfer of additional by the main pipeline to the point of delivery.

Second - the necessary license holders, including the following:

A - Numbers and implement a plan to develop the field and the establishment of field pipelines connected to the main pipeline or any amendments thereto with the consent of the competent bodies.

B - Preparation of development plan for the main pipeline amended to include any additions and modifications to the core network in the event of lack of capacity under the contract in force and submitted to the carrier specified by the Board.

C - to negotiate with the airline regarding the use of the pipeline and report the main details of the ministry of negotiations.

Chapter VI

Protection of sources of petroleum

Article -33 -

Committed to holders of licenses when you extract the petroleum wealth, including the following:

First - to avoid waste and prevent leaks from pipelines, the optimal maintenance of energy in the oil reservoir under the best practices in the oil industry in the management of the pipeline network.

II - Application of new technology and processes oil fields that lead to optimal recovery of the reservoirs that have been targeted as part of plans to develop the field.

III - continue to improve the knowledge of the reservoir through the optimal combination of information and control reservoir and to identify the means by which improvement of oil extraction, and application.

Article -34 -

Adopted plans to develop the field on the full investigation of alternatives to extraction strategies in order to select the solution that combines the highest level to extract oil with high levels of production and acceptable technical and economic efficiency.

Chapter VII

Ownership of data

Article -35 -

First - on the ministry organized a national center for information and storage of petroleum in ways that modern art and to conduct studies and provide the results to the relevant competent bodies to take advantage of them.

Second - on the ministry to provide copies of the information available for the oil to the competent bodies with other bodies such as the processing of the ministry of information emerging from petroleum operations carried out.

Thirdly - is owned by all the data that is obtained pursuant to any contract under this Act, to the National Information Center and the competent bodies may not be published or republished without the prior approval of them.

IV - defines the National Information Center and the competent bodies of conditions for the exercise rights with respect to data about oil and reports of geological, geophysical and engineering data, samples, models and surveys of wells, whether derived or primary or address or explained or analyzed.

Article -36 -

First - attend the possession, sale, purchase, transfer or delivery of or dealing with the information and data specified in clause (iii) of Article (35) of this Act, unless the contract stipulates otherwise.

Secondly - Without prejudice to any penalty provided by law, the violator shall be punished with the provisions of item (I) of this Article confiscated data, and the National Center for information and the relevant bodies of the right to claim compensation.

Article -37 -

First - to the competent bodies of the holder of licenses granted leave for the acquisition, sale, purchase, transfer or receipt of the old data on oil and gas, whether derived or primary or address or explained or analyzed, the requirement to provide the competent body of such data or copy.

Second - to the competent authorities refuse to grant leave provided for in item (I) of this article if you found a reason to justify it.

Chapter VIII

Inspection

Article -38 -

First - to the competent bodies or inspection conferred sites in which they conduct petroleum operations, including buildings, facilities and property, constraints, and data maintained by licensees.

Second - may not be the bodies competent to do the inspection during the intervention in the petroleum operations without reasonable justification only when it comes to preserving the environment and occupational health and industrial safety or to preserve oil wealth, according to the laws and regulations.

III - The conditions for an internal inspection system issued by the Council in coordination and consultation with the competent bodies.

Chapter IX

End costs

Article -39 -

First - Queen is transferred all the work and facilities to the federal authority concerned or to the competent body on the status of the actual operation, at the end of the license contract or a contract the main pipeline.

Second - all become commissioned to restore the site and costs set forth in the plan to end the assignment due when you convert the property.

Third - You must include a plan to develop the field development plan and the main pipe to the Council a detailed plan to license expiration.

Part IV

Financial provisions

Chapter I

Financial obligations

Article -40 -

First - holders of licenses required to perform taxes and fees prescribed by law and licensing contracts.

Second - are the accounts of holders of licenses for the control and scrutiny of Supreme Audit with respect to its activities inside Iraq.

Third - the foreign share of investment returns in accordance with Iraqi law and has to convert shares of its share in accordance with paragraph (d) of subsection (1) of Article (9) of this Act.

Article -41 -

First - to license holders convert the net profits derived from petroleum operations to outside Iraq after the payment of any taxes or fees prescribed by law and licensing contracts.

Second - the holders of the maintenance and keeping accounting records in Arabic, according to the terms of the contract and the requirements of relevant laws and the preparation and submission of data to the competent body, the Court of Audit.

Part V

General provisions

Chapter I

Dissemination of information

Article -42 -

First - the competent bodies of the deployment activities related to oil - while doing it - in two local daily newspapers and any other media, including:

A - returns and payments in kind and receipts in excess of (1) billion Iraqi dinars, which are delivered to any party representing the state or the public sector, derived from any activity associated with oil, and introduces the concept of revenue and imports of sale of petroleum and derivatives, and rewards the signature and production, property rights and revenue from the sale of assets and tax and fees and a share of the coalitions in the field of petroleum and commercial activities resulting from the contracts in the petroleum and derivatives, and the return on investment of oil revenues, and any payments due or collected from the commercial production of oil.

B - returns the use and distribution of petroleum, including distribution among government agencies.

C - financially important contracts relating to prospecting, development, production, processing and marketing of petroleum resources in Iraq.

D - financially important contracts related to the request bids for the supply of services and goods for the purposes of the petroleum industry than any one representing the State or the public sector.

E - the annual report of the Council.

And - annual and quarterly reports for licensees including budgets audited according to international accounting standards.

G - any other information provided in this Act or the regulations issued thereunder to be published.

Second - does not apply to the provision of item (I) of this article on non-financial information.

Thirdly - is void of any condition or agreement that would obscure the access to documents or information and the duty to publish under item (I) of this article, or intended to do so.

. IV - The Board shall issue an internal system to facilitate the implementation of the provisions of this Article, including the statement of principles adopted for the contract as a financial importance and scope of the exception contained in clause (ii) of this Article.

Chapter II

Conflict Resolution

Article -43 -

First - is for the conflicts that arise over the interpretation and application of this Act or the regulations issued thereunder through negotiations between the parties concerned, including Amih the principle of good faith.

Second - If the dispute is not resolved by agreement, be referred to the Council to resolve it in consultation with the licensees concerned.

Third - If you can not in good faith to reach a solution, the dispute shall be referred to arbitration or to the relevant judicial authorities according to the agreement provided for in the contract.

- IV -

A - applies to the arbitration between the competent bodies and holders of licenses of foreign substance, Iraqi law, and in terms of the shape-sensitive systems, the arbitration proceedings for the International Chamber of Commerce in Paris or Geneva or Regional Centre for International Commercial Arbitration in Cairo, according to the agreement provided for in the contract.

B - The contract includes the terms of appointment of arbitrators and the arbiter and the seat of arbitration and the expenses of arbitration and the time limit for the decision.

Article -44 -

First - the licenses held invalid if it violates the provisions of this law and legislation in force.

II - Iraqi law applies to the interpretation of contracts that are consensus reached in accordance with the provisions of this law and its implementation.

PART VI

Transparency and integrity

Article -45 -

Abide by all license holders to the principles of transparency and integrity in accordance with Iraqi laws in force and the international principles to combat corruption.

Title VII

Final provisions

- Article -46 -

First - This Law applies to the licensing contracts concluded after its issuance.

Second - the contracts are reviewed by the competent bodies before the issuance of this law by a committee composed of the Minister of Oil and the competent minister in the Kurdistan Region and Chairman of the Commission on oil and energy and natural resources in the House of Representatives.

Third - the Committee formed pursuant to paragraph (ii) of this Article, the use of experts and specialists as needed, and provide the results of its work to the Council.

IV - The Committee in its work to reach consensual solutions with the parties concerned, in the case of the survival of any outstanding matters to be decided by the leaders of the three main political blocs.

Article -47 -

First - the use of land for the purpose of petroleum operations and take advantage of them according to the law, taking into account the following:

A - to be a right of use and benefit of land not exceeding the duration of the contract.

B - to be the land where oil installations are located taboos determined in accordance with instructions issued by the competent authority.

C - to reimburse the owners of land within the area of ​​contract for damages caused by petroleum operations.

Second - in a situation where the owner or the owner of the land or the right of the right to dispose benefit Iraqis, it is to lease the land according to law.

- Article -48 -

Do not apply the provisions of this law on the operations of oil refining and gas processing and their industrial uses and processes, storage, and transport and distribution of petroleum products.

- Article -49 -

This law shall be the date of publication in the Official Gazette.

Reasons:

Given the entry of the Republic of Iraq, a new phase after the entry into force of the Constitution in 2006 established the principle that oil and gas property of all Iraqi people and defined the responsibilities and powers of the federal authorities and provincial authorities and provinces, including the respect of oil and gas sector, due to the fact that the Republic of Iraq is rich in sources of oil discovered and undiscovered, and where that production capacity of Iraq during the past decades, low compared to those sources, and given that oil and gas revenues represent the most important pillars of the redevelopment of the country in general and the Iraqi economy, particularly on the basis of a sustained, sober in a coordinated manner and the scheme takes into account the objectives of the Constitution, including the unity of the Republic of Iraq, and the nature of the sources petroleum natural exhaustible, and for the Council to focus on the role of President in the development of federal policies, planning, supervision and follow-up and improve operational efficiency, which requires the involvement of bodies and commercial entities and the main technical, including the oil company and an Iraqi national independent business and to give the role of the region and the provinces produced in petroleum operations In order to ensure effective coordination between these bodies, and for the modernization and further development of the oil industry through the participation of international investors and local skilled scientific, managerial and technical credit shall reflect positively on the oil revenues and help modernize the national experience in the oil sector and increase its effectiveness, in order to encourage the private sector national private associated directly or indirectly, oil and gas sector and support, initiated this law.

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Wednesday, 17 August 2011 10:35 GMT Alsumaria News / Baghdad