Iraq: Copy of the Oil and Gas Draft Law

trooper · August 17, 2011

August 17, 2011

Energy, Iraq, Oil and Gas, Oil Ministry, Oil reserves in Iraq, Petroleum, Petroleum industry

got “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 and the Regions and producing provinces in the management and development of 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, issued the following law: the law of oil and gas for the year 2011 Part I Basic Principles Chapter I Definitions Article 1 – The words and phrases the following for the purposes of this Act shall have the meanings about it first – the ministry – and the Federal Ministry of Oil. II – the competent bodies – the oil ministry or the competent authority in the region or province produced. III – Council – Council Federal oil and gas. IV – the region – each region, shape or form in accordance with the provisions of the Constitution. V – Sessions licenses – 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 inviting for presentations, and open the presentations and analysis, 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 are 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 holder of license exploration and development and production based on a plan to develop the field, or plan to develop main pipeline, which aims to produce and transport oil. 10 – production – oil extraction and runoff. 11 – to maintain production – 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 point of processing the agreed within or outside Iraq. 13 – carrier – the entity designated by the Board to receive oil from the holder of licenses for exploration, development and production at the point of conversion and delivery of oil for export to the holder of a license exploration, development and production at the point of delivery. 14 – point measurement of production – the site or sites in which they are measuring the size and quality of oil. 15 – point of supply – the site that converts oil from the main pipeline or pipeline field to a different type of transport or 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 of a cent of its share capital owned 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 advisers Annex Council Federal oil and gas. 19 – discovery – the first appearance of oil are encountered in the reservoir by drilling can be drawn on the surface through the oil industry modern. 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 for development. 22 – field – a region that contains a reservoir or a reservoir, together or linked to the same geological structure or situation Alastrutgrave includes the Earth’s surface and its interior . 23 – step development of the field – the program and estimate the cost fixed for evaluation and development activities required to develop and produce oil from a specific field or group of fields from the holder of a license of exploration and development and production. 24_ reservoir – gathers petroleum separate unit specific geological characteristics of the rock and the limits of synthetic or stratified and surfaces in contact or overlapping between the oil and water in the configuration, so that affects the production of petroleum in any part of this gathering oil on the total 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 hydrocarbon which the status of gas when the temperature and pressure in the reservoir, whether accompanying the hydrocarbons liquid or non-companion, as well as the gas remaining after extraction of liquid hydrocarbons from the reservoir. 27 – associated gas – Gas in the reservoir while dissolved in a liquid Haedrokrbone or in the dome of gas above the oil and in contact with for crude oil. 28 – non-associated gas – free gas status of gas when the temperature and pressure in the reservoir. 29 – the main pipeline – system engineering, including pipelines, valve stations, pumping stations and stations, baling and installations constructed from the carrier or holders of licenses for the transfer of oil from a field or several fields or sources inside or outside Iraq, except pipelines field. 30_ pipeline field – a set pipe 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 stations, baling and facilities associated. 31 – point conversion – lip of the entrance to the pipeline beyond the point of measurement of production. 32 – delivery point – the point or points and the arrival of oil to the lip of the entrance of a tank vessel or a point agreed upon in the exploration, development and production inside or outside Iraq. 33 – best practices for network management pipes – good practices and the guarantor and appropriate to the environment, economic and effective in the transfer of oil. 34 – holders of licenses – a foreign company or Iraqi or group companies or any form of alliance for the purpose of contracting in the field of oil in Iraq. 35 – Contract Area – the region that the holder of prospecting licenses and development and production is authorized, including exploration, development and production of oil. Chapter II Objectives and scope of the force of Article 2 – This law aims to the following: first – policy 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. II – Operations Management petroleum in order to achieve the highest benefit to the Iraqi people. III – Ensure coordination and partnership between the federal government, regions and producing provinces in the management and development of Petroleum sources in order to achieve the national interest at any stage of the petroleum operations. IV – access to the highest level of growth in reserves and production. V. – to maximize the financial resources of Iraq through the appropriate investment of wealth in petroleum and maintained on the basis of technical and economic 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 professionalism and civil technical and economic 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 provinces of oil-producing. II – lay the foundations for cooperation between the competent bodies. III – lay the foundations for coordination and consultation between the federal and provincial authorities and the provinces of Petroleum. IV – Expansion in the use of voltage direct public and private sectors of Iraq to carry out petroleum 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 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 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. II – will be nominated president and vice president and independent experts of the three by the Presidency of the Council of Representatives and approved by by the Council by absolute majority of its members. Part II Department of Petroleum sources first quarter powers Article 6 – The following agencies manage the sources of petroleum, each according to its competence and according to this law: first – the House of Representatives. II – The Council of Ministers. III – Federal Council for Oil and gas. IV – Ministry of Oil. V – a representative of all regions. VI – a representative from each province produced. Article 7 – The Council of Representatives as follows: First, – legislation, federal laws of the operations associated with the oil sector. II – Approval of the international conventions related to the petroleum sector. Article 8 – The Council of Ministers as follows: First – make a recommendation to the Board of Deputies for the draft laws proposed for the discovery and development of sources of petroleum. Second – ensure that the Council and the Ministry’s adoption of appropriate means and effective consultation and coordination with regional bodies and the provinces of oil-producing in order to achieve the objectives of this law . Article 9 – First – The Board shall assume the following: a – put petroleum policies of the Federal and the general plans for exploration and field development plans and pipe major and modified. b – issue instructions include standards to negotiate and contract for the granting of licenses or contracts for the development, production, and the eligibility criteria for companies. c – Preparation of samples contracts for 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 are granted by the competent body to carry out the operations of oil and decide where and adjusted according to the mechanism provided for 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 ascertain of oil and gas reserves and to compensate the production and the addition of new reserves. g – coordination with the competent bodies in order to ensure the development and exploitation of Petroleum sources in the interests of the Iraqi people in accordance with the provisions of laws and regulations and contractual requirements and standards. h – Identify the national level to produce oil appropriate national policy, to apply those selections in a fair and just on the basis of the proportion of production per area of contract based on the plans to develop the field adopted. II – 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 policies Petroleum, 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 bylaws issued by the two-thirds majority of its members. IV – the end of the period in paragraph (e) of item (I) Article (13) of this Act, the Council decides responsibility for the management and operation of oil and gas pipelines main ports of export. Article -10 – First – The Council office is called (office of independent advisers) The study of decades of exploration and development, production and development plans for oil and gas fields, and any other things related to this, and to provide advice and recommendations in that to the Council. II – The office includes a number of Iraqi experts and foreigners 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. II – the number of draft regulations and the issuance of instructions and data for the implementation of policies, laws and plans of oil and submitted to Council for approval. III – Control of petroleum operations and supervision 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 homogeneous policy of petroleum 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 – Proposing a comprehensive plan to the Council to explore for oil and gas in all parts of Iraq in consultation with the competent bodies other, and classification of areas according to the prospects of petroleum. VII – the participation in the number of model contracts 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 – negotiating 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 petroleum, according to law. Article -12 – The competent bodies shall supervise the implementation of contracts for services, processing of the operations of oil and coming out 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 fields discovered but not developed 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 – carry out exploration and development, production, transportation, storage, marketing and sales in accordance with the provisions of this law. e – management and operation of the pipeline network of oil and gas, the main ports of export in Iraq and enter into contracts for oil and gas shipping until the completion of reorganization of the pipe joint carrier for a maximum of 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 oil and gas in oil exploration, development and production outside 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 volume of work 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 natural persons or moral according to the 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 exploration, development and production of discovered fields is 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 in accordance with mechanisms in provided for in Article (18) of the Act. V – Monitoring and supervision of the oil operations and audit costs and expenses of companies operating in region in order to ensure uniform implementation and application of homogeneous policy of petroleum in all parts of Iraq in accordance with instructions issued by the Council. Chapter II Licenses Article 15 – First – The bodies of the competent licensing oil operations for an Iraqi company or foreign, on the basis of exploration, development, production, contract development and production concluded with the ministry or the regional body and an Iraqi company or foreign company, specifying the eligibility technical and financial capacity in accordance with the eligibility criteria for companies established by the Board according to the mechanisms of negotiation and the contract stipulated in Article (18) of the Act. II – taken into account in the granting of licenses for the operations provided for in item (I) of this Article, the following principles: a – respect for the sovereignty of national interest. B – adoption of the weighting method for the selection of candidate qualified through courses licenses competitive 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 .

-Policy 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 of Petroleum sources in order to achieve 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 sophisticated management processes Oil 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 of cooperation between the competent bodies, and lay the foundations for coordination and consultation between the federal and provincial authorities and the provinces of Petroleum, and the expansion in the use of voltage direct public and private sectors of Iraq to carry out 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: – building on what passed the House of Representatives and endorsed by the Council presidency Based on the provisions of subsection (I) of Article (61) and item (iii) of Article (73) and articles (111) and (112) of the Constitution, issued the following law: the law of oil and gas for the year 2011 Title I basic principles of Chapter I Definitions Article 1 – means the following words and phrases for the purposes of this Act shall have the meanings about it first – the ministry – and the Federal Ministry of Oil. II – the competent bodies – the oil ministry or the competent authority in the region or province produced. III – Council – Federal Council for Oil and gas. IV – the region – each region shape or form in accordance with the provisions of the Constitution. V – Sessions licenses – 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 invited to make presentations, and the opening of the presentations and analysis, and choose the best including 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 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 licensee exploration, development and production based on a plan to develop the field, or plan to develop lines pipe major, which aims to produce and transport oil. 10 – production – oil extraction and runoff. 11 – to maintain production – 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 – Operations Petroleum – 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 point of processing the 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 holder of a license exploration, development and production at the point of delivery. 14 – point measurement of production – the site or sites in which they are measuring the size and quality of oil. 15 – point of supply – the site that converts oil from the main pipeline or pipeline field to a different type of transport or 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 its share capital owned 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 advisers Annex Council Federal oil and gas. 19 – discovery – the first appearance of oil are encountered in the reservoir by drilling can be drawn on the surface through the oil industry modern. 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 for development. 22 – field – a region that contains a reservoir or a reservoir, together or linked to the same geological structure or situation Alastrutgrave includes the Earth’s surface and interior. 23 – step development of the field – the program and cost estimate fixed for evaluation and development activities required to develop and produce oil from a specific field or group of fields from the holder of a license of exploration and development and production. 24_ reservoir – gathers petroleum separate unit specific geological characteristics of the rock and the limits of synthetic or stratified and surfaces in contact or overlapping between the oil and water in the configuration, so that affect production oil in any part of this gathering oil on the total 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 a hydrocarbon that is the situation of gas when the temperature and pressure in the reservoir, either whether associated with the hydrocarbon liquid or non-companion, as well as the gas remaining after extraction of liquid hydrocarbons from the reservoir. 27 – associated gas – Gas in the reservoir, but dissolved in a liquid Haedrokrbone or in the Dome of the gas above the oil and in contact with crude oil. 28 – non-associated gas – natural gas free status of gas when the temperature and pressure in the reservoir. 29 – the main pipeline – system engineering, including pipelines, valve stations, pumping stations and stations, baling and installations constructed from the carrier or holders of licenses for the transfer of oil from a field or several fields or sources inside or outside Iraq except the lines tubes of the field. 30_ pipeline field – a set pipe 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 stations pressing and facilities associated. 31 – point conversion – lip entrance of the pipeline beyond from the point of measurement of production. 32 – delivery point – the point or points and the arrival of oil to the lip of the entrance of a tank vessel or a point agreed upon in the exploration, development and production inside or outside Iraq. 33 – best practices for managing a network of pipes – good practices and the guarantor and appropriate to the environment, economic and effective in transfer oil. 34 – holders of licenses – a foreign company or Iraqi or group companies or any form of alliance for the purpose of contracting in the field of oil in Iraq. 35 – Contract Area – the region that the holder of licenses for exploration, development and production is authorized, including exploration, development and production of oil. Chapter second objectives and scope of the force of Article 2 – This law aims to the following: first – policy 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. II – Operations Management petroleum in order to achieve the highest benefit to the people Iraq. III – Ensure coordination and partnership between the federal government, regions and producing provinces in the management and development of Petroleum sources in order to achieve the national interest at any stage of the petroleum operations. IV – access to the highest level of growth in reserves and production. V – Maximizing financial resources for Iraq through the appropriate investment of wealth in petroleum and maintained on the basis of technical and economic 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 qualified and able to contribute substantially to the petroleum operations. IX – to ensure professional competence and capacity of technical and economic 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 system 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. II – lay the foundations for cooperation between the competent bodies. III – laying the foundations for coordination and consultation between the federal authorities and the authorities of the regions and governorates Petroleum. IV – Expansion in the use of voltage direct public and private sectors of Iraq to carry out petroleum 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 applies the law on 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 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 – Minister of Finance – member. e – Minister of Planning and Development Cooperation – a member of. and – three independent experts, specialists affairs of the oil and gas and money and the economy – the members. g – a representative of each region or province produced irregularly on the territory of experienced and competent – the members. II – will be nominated president and vice president and independent experts of the three by the Presidency of the Council of Representatives and endorsed by the Council by absolute majority of its members. Part II Administration Petroleum sources first quarter powers Article 6 – The following agencies manage the sources of petroleum, each according to its competence and according to this law: first – the House of Representatives. II – The Council of Ministers. III – Federal Council for Oil and gas. IV – Ministry of Oil. V – a representative of all regions . VI – a representative from each province produced. Article 7 – The Council of Representatives as follows: 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 sources of petroleum. Second – ensure that the Council and the Ministry’s adoption of appropriate means and effective consultation and coordination with regional bodies and the provinces of oil-producing in order to achieve the objectives of this law. Article 9 – First – The Council is the following: a – the development of policies petroleum federal and general plans for exploration and field development plans and pipe major and modified. b – issue instructions include standards to negotiate and contract for the granting of licenses or contracts for the development, production, and the eligibility criteria for companies. c – Preparation of model contracts exploration, development and production in accordance with the standards contained in this law and approval, modification and approval 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 are granted by the competent body to carry out the operations of oil and decide where and adjusted according to the mechanism provided for in Article (18) of the Act. e – 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 sources in the interests of the Iraqi people in accordance with the provisions of laws and regulations and contractual requirements and standards. h – Identify the national level to produce oil appropriate national policy, to apply those selections in a fair and just on the basis of rate of production of each region contracted at the plans to develop the field adopted. II – Council will meet at the invitation of President or Vice President in the absence of the President once a month at least, makes 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 of internal Board of Directors in two-thirds majority of its members. IV – the end of the period in paragraph (e) of item (I) of Article (13) of the Act, decides Council responsible for the management and operation of oil and gas pipelines main ports of export. Article -10 – First – The Council office is called (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 the will to Council. II – The office includes a number of Iraqi experts and foreigners 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 petroleum. II – the number of draft regulations and the issuance of instructions and data for the implementation of policies, laws and plans of oil and submitted to Council for approval. III – Control of petroleum operations and supervision 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 policy Petroleum 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 find solutions optimal 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 – Proposing a comprehensive plan to the Council to explore for oil and gas in all parts of Iraq in consultation with other competent bodies, classification of areas according to the prospects for oil. VII – Council’s involvement in the number of model contracts 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 organizations and regional agreements would relevant international and according to law. X. – representation of the Republic of Iraq in regional and international forums in matters of oil, according to the law. Article -12 – The competent bodies shall supervise the implementation of contracts for services to prepare for the operations of oil and that comes out of 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 – Participation in exploration, development and production in Iraq and on a competitive basis in sessions of the licenses. d – carry out exploration and development, production, transportation, storage, marketing and sales in accordance with the provisions of this law. e – management and operation of the pipeline network of oil and gas, the main ports of export in Iraq and enter into contracts for oil and gas shipping until the completion of reorganization of the pipe joint carrier for a maximum of 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 in oil exploration, development and production outside 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 achieve benefit of 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 natural persons or moral according to the law. Article 14 – The bodies competent 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 exploration, development and production of discovered fields is 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 in accordance with mechanisms in provided for 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 coherent policy petroleum All over Iraq, according to the instructions issued by the Board. Chapter II licenses Article -15 – First – The competent bodies of licensing oil operations to an Iraqi company or foreign on the basis of exploration, development, production, contract development and production contract with the Ministry or the regional body 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 of negotiation 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 – Adoption of weighting method for the selection of candidate qualified through courses licenses competitive 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 features and requirements each area or field, or the opportunity to be displayed, and especially the statements of the 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 – to be the selection and classification of applicants admitted to

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, issued the following law: the law of oil and gas for the year 2011 Part I Basic Principles Chapter I Definitions Article 1 – The words and phrases the following for the purposes of this Act shall have the meanings about it first – the ministry – and the Federal Ministry of Oil. II – the competent bodies – the oil ministry or the competent authority in the region or province produced. III – Council – Council Federal oil and gas. IV – the region – each region, shape or form in accordance with the provisions of the Constitution. V – Sessions licenses – 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 inviting for presentations, and open the presentations and analysis, 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 are 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 holder of license exploration and development and production based on a plan to develop the field, or plan to develop main pipeline, which aims to produce and transport oil. 10 – production – oil extraction and runoff. 11 – to maintain production – 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 point of processing the agreed within or outside Iraq. 13 – carrier – the entity designated by the Board to receive oil from the holder of licenses for exploration, development and production at the point of conversion and delivery of oil for export to the holder of a license exploration, development and production at the point of delivery. 14 – point measurement of production – the site or sites in which they are measuring the size and quality of oil. 15 – point of supply – the site that converts oil from the main pipeline or pipeline field to a different type of transport or 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 of a cent of its share capital owned 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 advisers Annex Council Federal oil and gas. 19 – discovery – the first appearance of oil are encountered in the reservoir by drilling can be drawn on the surface through the oil industry modern. 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 for development. 22 – field – a region that contains a reservoir or a reservoir, together or linked to the same geological structure or situation Alastrutgrave includes the Earth’s surface and its interior . 23 – step development of the field – the program and estimate the cost fixed for evaluation and development activities required to develop and produce oil from a specific field or group of fields from the holder of a license of exploration and development and production. 24_ reservoir – gathers petroleum separate unit specific geological characteristics of the rock and the limits of synthetic or stratified and surfaces in contact or overlapping between the oil and water in the configuration, so that affects the production of petroleum in any part of this gathering oil on the total 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 hydrocarbon which the status of gas when the temperature and pressure in the reservoir, whether accompanying the hydrocarbons liquid or non-companion, as well as the gas remaining after extraction of liquid hydrocarbons from the reservoir. 27 – associated gas – Gas in the reservoir while dissolved in a liquid Haedrokrbone or in the dome of gas above the oil and in contact with for crude oil. 28 – non-associated gas – free gas status of gas when the temperature and pressure in the reservoir. 29 – the main pipeline – system engineering, including pipelines, valve stations, pumping stations and stations, baling and installations constructed from the carrier or holders of licenses for the transfer of oil from a field or several fields or sources inside or outside Iraq, except pipelines field. 30_ pipeline field – a set pipe 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 stations, baling and facilities associated. 31 – point conversion – lip of the entrance to the pipeline beyond the point of measurement of production. 32 – delivery point – the point or points and the arrival of oil to the lip of the entrance of a tank vessel or a point agreed upon in the exploration, development and production inside or outside Iraq. 33 – best practices for network management pipes – good practices and the guarantor and appropriate to the environment, economic and effective in the transfer of oil. 34 – holders of licenses – a foreign company or Iraqi or group companies or any form of alliance for the purpose of contracting in the field of oil in Iraq. 35 – Contract Area – the region that the holder of prospecting licenses and development and production is authorized, including exploration, development and production of oil. Chapter II Objectives and scope of the force of Article 2 – This law aims to the following: first – policy 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. II – Operations Management petroleum in order to achieve the highest benefit to the Iraqi people. III – Ensure coordination and partnership between the federal government, regions and producing provinces in the management and development of Petroleum sources in order to achieve the national interest at any stage of the petroleum operations. IV – access to the highest level of growth in reserves and production. V. – to maximize the financial resources of Iraq through the appropriate investment of wealth in petroleum and maintained on the basis of technical and economic 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 professionalism and civil technical and economic 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 provinces of oil-producing. II – lay the foundations for cooperation between the competent bodies. III – lay the foundations for coordination and consultation between the federal and provincial authorities and the provinces of Petroleum. IV – Expansion in the use of voltage direct public and private sectors of Iraq to carry out petroleum 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 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 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. II – will be nominated president and vice president and independent experts of the three by the Presidency of the Council of Representatives and approved by by the Council by absolute majority of its members. Part II Department of Petroleum sources first quarter powers Article 6 – The following agencies manage the sources of petroleum, each according to its competence and according to this law: first – the House of Representatives. II – The Council of Ministers. III – Federal Council for Oil and gas. IV – Ministry of Oil. V – a representative of all regions. VI – a representative from each province produced. Article 7 – The Council of Representatives as follows: First, – legislation, federal laws of the operations associated with the oil sector. II – Approval of the international conventions related to the petroleum sector. Article 8 – The Council of Ministers as follows: First – make a recommendation to the Board of Deputies for the draft laws proposed for the discovery and development of sources of petroleum. Second – ensure that the Council and the Ministry’s adoption of appropriate means and effective consultation and coordination with regional bodies and the provinces of oil-producing in order to achieve the objectives of this law . Article 9 – First – The Board shall assume the following: a – put petroleum policies of the Federal and the general plans for exploration and field development plans and pipe major and modified. b – issue instructions include standards to negotiate and contract for the granting of licenses or contracts for the development, production, and the eligibility criteria for companies. c – Preparation of samples contracts for 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 are granted by the competent body to carry out the operations of oil and decide where and adjusted according to the mechanism provided for 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 ascertain of oil and gas reserves and to compensate the production and the addition of new reserves. g – coordination with the competent bodies in order to ensure the development and exploitation of Petroleum sources in the interests of the Iraqi people in accordance with the provisions of laws and regulations and contractual requirements and standards. h – Identify the national level to produce oil appropriate national policy, to apply those selections in a fair and just on the basis of the proportion of production per area of contract based on the plans to develop the field adopted. II – 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 policies Petroleum, 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 bylaws issued by the two-thirds majority of its members. IV – the end of the period in paragraph (e) of item (I) Article (13) of this Act, the Council decides responsibility for the management and operation of oil and gas pipelines main ports of export. Article -10 – First – The Council office is called (office of independent advisers) The study of decades of exploration and development, production and development plans for oil and gas fields, and any other things related to this, and to provide advice and recommendations in that to the Council. II – The office includes a number of Iraqi experts and foreigners 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. II – the number of draft regulations and the issuance of instructions and data for the implementation of policies, laws and plans of oil and submitted to Council for approval. III – Control of petroleum operations and supervision 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 homogeneous policy of petroleum 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 – Proposing a comprehensive plan to the Council to explore for oil and gas in all parts of Iraq in consultation with the competent bodies other, and classification of areas according to the prospects of petroleum. VII – the participation in the number of model contracts 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 – negotiating 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 petroleum, according to law. Article -12 – The competent bodies shall supervise the implementation of contracts for services, processing of the operations of oil and coming out 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 fields discovered but not developed 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 – carry out exploration and development, production, transportation, storage, marketing and sales in accordance with the provisions of this law. e – management and operation of the pipeline network of oil and gas, the main ports of export in Iraq and enter into contracts for oil and gas shipping until the completion of reorganization of the pipe joint carrier for a maximum of 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 oil and gas in oil exploration, development and production outside 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 volume of work 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 natural persons or moral according to the 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 exploration, development and production of discovered fields is 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 in accordance with mechanisms in provided for in Article (18) of the Act. V – Monitoring and supervision of the oil operations and audit costs and expenses of companies operating in region in order to ensure uniform implementation and application of homogeneous policy of petroleum in all parts of Iraq in accordance with instructions issued by the Council. Chapter II Licenses Article 15 – First – The bodies of the competent licensing oil operations for an Iraqi company or foreign, on the basis of exploration, development, production, contract development and production concluded with the ministry or the regional body and an Iraqi company or foreign company, specifying the eligibility technical and financial capacity in accordance with the eligibility criteria for companies established by the Board according to the mechanisms of negotiation and the contract stipulated in Article (18) of the Act. II – taken into account in the granting of licenses for the operations provided for in item (I) of this Article, the following principles: a – respect for the sovereignty of national interest. B – adoption of the weighting method for the selection of candidate qualified through courses licenses competitive 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 – to be the selection and classification of applicants accepted on the basis of the quality and effectiveness of the proposed action plans and the economic benefit of Iraq. g – The competent bodies of the announcement of the text of the 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 the operations of oil the following criteria: First – of national sovereignty. II – Iraq has the sources of petroleum. III – maximum return and the national economy. IV – waiver of the license holder for unused land within the Contract Area in accordance with contractual terms. V – Return appropriate for the investor in accordance with the provisions of this law. VI – Obligations of parties to the contract and the consequences of a breach of them. VII – the arrangements and conditions for the exercise of rights relating to the data. VIII – Granting the features and specific incentives for the Iraqi companies service. IX – extracting the maximum oil. 10 – the transfer of technology.

-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, issued the following law: the law of oil and gas for the year 2011 Part I Basic Principles Chapter I Definitions Article 1 – The words and phrases the following for the purposes of this Act shall have the meanings about it first – the ministry – and the Federal Ministry of Oil. II – the competent bodies – the oil ministry or the competent authority in the region or province produced. III – Council – Council Federal oil and gas. IV – the region – each region, shape or form in accordance with the provisions of the Constitution. V – Sessions licenses – 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 inviting for presentations, and open the presentations and analysis, 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 .

Neapolitan · August 17, 2011

That's almost as long as the Book of Psalms!! Any attorneys or politicians out there that can translate?

Goeers · August 17, 2011

Oh My God ............................

aliciadogz · August 17, 2011

In my thinking were done now.Push that darn button,PLEASE!!!!!!

Dalite · August 17, 2011

Reformatted and duplication removed.

Hope this reads better..

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Iraq: Copy of the Oil and Gas Draft Law

August 17, 2011

Energy, Iraq, Oil and Gas, Oil Ministry, Oil reserves in Iraq, Petroleum, Petroleum industry

got “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 and the Regions and producing provinces in the management and development of 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, issued the following law: the law of oil and gas for the year 2011

Part I Basic Principles Chapter I Definitions

Article 1 – means the following words and phrases for the purposes of this Act shall have the meanings about it

1 – The words and phrases the following for the purposes of this Act shall have the meanings about it first – the ministry – and the Federal Ministry of Oil.

II – the competent bodies – the oil ministry or the competent authority in the region or province produced.

III – Council – Council Federal oil and gas.

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

V – Sessions licenses – 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 inviting for presentations, and open the presentations and analysis, 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 are 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 holder of license exploration and development and production based on a plan to develop the field, or plan to develop main pipeline, which aims to produce and transport oil.

10 – production – oil extraction and runoff.

11 – to maintain production – 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 point of processing the agreed within or outside Iraq.

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

14 – point measurement of production – the site or sites in which they are measuring the size and quality of oil.

15 – point of supply – the site that converts oil from the main pipeline or pipeline field to a different type of transport or 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 of a cent of its share capital owned 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 advisers Annex Council Federal oil and gas.

19 – discovery – the first appearance of oil are encountered in the reservoir by drilling can be drawn on the surface through the oil industry modern.

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 for development.

22 – field – a region that contains a reservoir or a reservoir, together or linked to the same geological structure or situation Alastrutgrave includes the Earth’s surface and its interior .

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

24_ reservoir – gathers petroleum separate unit specific geological characteristics of the rock and the limits of synthetic or stratified and surfaces in contact or overlapping between the oil and water in the configuration, so that affects the production of petroleum in any part of this gathering oil on the total 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 hydrocarbon which the status of gas when the temperature and pressure in the reservoir, whether accompanying the hydrocarbons liquid or non-companion, as well as the gas remaining after extraction of liquid hydrocarbons from the reservoir.

27 – associated gas – Gas in the reservoir while dissolved in a liquid Haedrokrbone or in the dome of gas above the oil and in contact with for crude oil.

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

29 – the main pipeline – system engineering, including pipelines, valve stations, pumping stations and stations, baling and installations constructed from the carrier or holders of licenses for the transfer of oil from a field or several fields or sources inside or outside Iraq, except pipelines field.

30_ pipeline field – a set pipe 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 stations, baling and facilities associated.

31 – point conversion – lip of the entrance to the pipeline beyond the point of measurement of production.

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

33 – best practices for network management pipes – good practices and the guarantor and appropriate to the environment, economic and effective in the transfer of oil.

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

35 – Contract Area – the region that the holder of prospecting licenses and development and production is authorized, including exploration, development and production of oil.

Chapter II Objectives and scope of the force of Article 2 – This law aims to the following:

first – policy 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.

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

III – Ensure coordination and partnership between the federal government, regions and producing provinces in the management and development of Petroleum sources in order to achieve the national interest at any stage of the petroleum operations.

IV – access to the highest level of growth in reserves and production.

V. – to maximize the financial resources of Iraq through the appropriate investment of wealth in petroleum and maintained on the basis of technical and economic 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 professionalism and civil technical and economic 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 provinces of oil-producing.

II – lay the foundations for cooperation between the competent bodies.

III – lay the foundations for coordination and consultation between the federal and provincial authorities and the provinces of Petroleum.

IV – Expansion in the use of voltage direct public and private sectors of Iraq to carry out petroleum 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 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 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.

II – will be nominated president and vice president and independent experts of Lthe three by the Presidency of the Council of Representatives and approved by by the Council by absolute majority of its members.

Part II Department of Petroleum sources first quarter powers

Article 6 – The following agencies manage the sources of petroleum, each according to its competence and according to this law:

first – the House of Representatives.

II – The Council of Ministers.

III – Federal Council for Oil and gas.

IV – Ministry of Oil.

V – a representative of all regions.

VI – a representative from each province produced.

Article 7 – The Council of Representatives as follows:

First, – legislation, federal laws of the operations associated with the oil sector.

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

Article 8 – The Council of Ministers as follows:

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

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

Article 9 –

First – The Board shall assume the following:

a – put petroleum policies of the Federal and the general plans for exploration and field development plans and pipe major and modified.

b – issue instructions include standards to negotiate and contract for the granting of licenses or contracts for the development, production, and the eligibility criteria for companies.

c – Preparation of samples contracts for 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 are granted by the competent body to carry out the operations of oil and decide where and adjusted according to the mechanism provided for 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 ascertain of oil and gas reserves and to compensate the production and the addition of new reserves.

g – coordination with the competent bodies in order to ensure the development and exploitation of Petroleum sources in the interests of the Iraqi people in accordance with the provisions of laws and regulations and contractual requirements and standards.

h – Identify the national level to produce oil appropriate national policy, to apply those selections in a fair and just on the basis of the proportion of production per area of contract based on the plans to develop the field adopted.

II – 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 policies Petroleum, 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 bylaws issued by the two-thirds majority of its members.

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

Article -10 –

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

II – The office includes a number of Iraqi experts and foreigners 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.

II – the number of draft regulations and the issuance of instructions and data for the implementation of policies, laws and plans of oil and submitted to Council for approval.

III – Control of petroleum operations and supervision 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 homogeneous policy of petroleum 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 – Proposing a comprehensive plan to the Council to explore for oil and gas in all parts of Iraq in consultation with the competent bodies other, and classification of areas according to the prospects of petroleum.

VII – the participation in the number of model contracts 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 – negotiating 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 petroleum, according to law.

Article -12 – The competent bodies shall supervise the implementation of contracts for services, processing of the operations of oil and coming out 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 fields discovered but not developed 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 – carry out exploration and development, production, transportation, storage, marketing and sales in accordance with the provisions of this law.

e – management and operation of the pipeline network of oil and gas, the main ports of export in Iraq and enter into contracts for oil and gas shipping until the completion of reorganization of the pipe joint carrier for a maximum of 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 oil and gas in oil exploration, development and production outside 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 volume of work 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 natural persons or moral according to the 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 exploration, development and production of discovered fields is 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 in accordance with mechanisms in provided for in Article (18) of the Act.

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

Chapter II Licenses

Article 15 –

First – The bodies of the competent licensing oil operations for an Iraqi company or foreign, on the basis of exploration, development, production, contract development and production concluded with the ministry or the regional body and an Iraqi company or foreign company, specifying the eligibility technical and financial capacity in accordance with the eligibility criteria for companies established by the Board according to the mechanisms of negotiation and the contract stipulated in Article (18) of the Act.

II – taken into account in the granting of licenses for the operations provided for in item (I) of this Article, the following principles:

a – respect for the sovereignty of national interest.

B – adoption of the weighting method for the selection of candidate qualified through courses licenses competitive 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 .

tjmunson · August 17, 2011

Even the Cliff Notes are 100 pages long. If I had that long of an attention span I would be a successful lawyer and wouldn't need the dinar.

Peace

wealthbytrade · August 17, 2011

I think it's interesting how Maliki walks out of Parliament today, and all the sudden the draft law is released to the media....? I think the side opposing Maliki is who sent it to the media.

caz1104 · August 17, 2011

Evelyn Woodhead past out tryin to read this

Dalite · August 17, 2011

I think it's interesting how Maliki walks out of Parliament today, and all the sudden the draft law is released to the media....? I think the side opposing Maliki is who sent it to the media.

Anything that helps the Iraqi citizen weakens Maliki's power.

He will do everything within his power to keep the benefits from reaching the citizen level.

I hope they keep it up and force him to do something..

CRYPTO REWARDS!

Iraq: Copy of the Oil and Gas Draft Law

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