Basra studies journal

Oil and gas production is one of the main areas of economic development in Iraq, however, the oil and gas industry has a strong negative impact on the environment, forcing the state to carry out the competent general management of environmental activities during the production process. Although the government system, seems to be somewhat organized in the field of hydrocarbon production, it also has its drawbacks, the most important of which is the lack of a unified law regulating all aspects of oil and gas production, including the environmental component, and the current environmental laws that regulate the environmental aspect of hydrocarbon production suffer from poor coordination, and in this chaotic situation, it is difficult to regulate environmental activities.
The research analyzes the environmental protection measures taken by the Iraqi administrative authorities in the process of oil and gas production and treatment. Also, it considers the features and work of the public administration, technical aspects, and other aspects related to reducing the level of pollution in the oil and gas production process and the work of relevant institutions, as well as the analysis of modern policies in the field of environmental protection, and measures are proposed to improve the environmental situation, as well as the use of several advanced technologies to introduce them into this industry.

The oil and energy sector is the cornerstone of the Iraqi economy, yet it faces numerous challenges under the current laws and regulations. This study addresses the "Legislative and Legal Mechanisms for the Development of the Oil and Energy Sector in Iraq – A Case Study of Basra Governorate," given the importance of this subject in light of the vital role the oil and energy sector plays for Iraq, particularly in the Basra region.
The central problem of this study lies in identifying the appropriate legislative and legal mechanisms for developing the oil and energy sector in Iraq in general and in Basra specifically. This includes revitalizing the sector, overcoming the obstacles it faces, and encouraging investment in it.
The study aims to analyze the current legislative and legal framework governing the oil and energy sector in Iraq, including relevant laws and regulations, government policies, and strategies concerning this sector. It also evaluates the efficiency of this framework and its alignment with international developments and standards.
The study is divided into three main chapters: the first addresses the current state of the oil and energy sector in Iraq and Basra, the second focuses on the current legislative and legal framework for the oil and energy sector in Iraq, and the third is dedicated to proposing mechanisms for developing the oil and energy sector in Iraq and Basra.
The study concludes with several findings, most notably that one of the major challenges facing the oil and energy sector in Iraq is the inadequacy of the current legislative and legal framework. The existing laws and regulations are outdated and not conducive to attracting foreign investments and partnerships with the private sector. The study recommends a comprehensive reform of the legislative and legal framework governing the oil and energy sector in Iraq, alongside adopting more sustainable and environmentally friendly policies and practices in the sector.

The Oil licensing contracts are considered one of the main pillars in developing the oil sector, because of their effective role in achieving development and economic stability by attracting and encouraging international oil companies to invest in the country, and working to create a stable environment for them, overcoming obstacles and providing encouraging facilities that will work to advance economic development.
Since ancient times, these contracts have received great attention from the legal and jurisprudential aspects, and since the basic principle in these contracts is that, the period and price are specifically specified in them, negating gross ignorance and deception.
However, the development that accompanies contracts in general and oil licensing contracts in particular has led to the emergence of a new type of contract that will keep pace with developments in the oil field. These contracts are called (open oil licensing contracts), which aim to give both parties to the contract greater freedom in determining what they have contracted. In terms of the duration of the contract, price, quantity, etc., given the possibility of changing the circumstances surrounding the contract. Therefore, we will take this part as a way to enter into the narration of the content of this contract and cover it in some detail.

Management obligations in oil service contracts that countries grant to investors in the oil sector are one of the things that encourage investment, bringing in capital and transferring technology, which contributes to economic development. The oil-producing country wants to support its national economy by introducing hard currency, and in return, the investing companies seek to obtain the greatest amount. of profits, so it was necessary for someone to lead the negotiations, in order to avoid running into problems, and this cannot be achieved unless there is an appropriate legal system for this type of investment. Each oil-producing country establishes a number of legal guarantees to provide legal protection to the investor and grant him a number of the necessary benefits, exemptions and facilities in its laws.

The social responsibility of the Iraqi National Oil Company is of great importance in developing Iraqi society, as the legislator included in the Iraqi National Oil Company Law several means to carry out these social tasks, which are represented by deducting from the reserve to develop social activity, as well as deducting a portion of the profits that go to the Citizens Fund, the Generations Fund, and the Reconstruction Fund. It is thus within the rights of future generations through long-term investments, and through these images of the company's social responsibility, which is directed in several directions, towards the workers and its internal community in particular and towards Iraqi society as a whole and preserving the environment in general. The law also paid attention to the agricultural, industrial, recreational, sports, and even educational aspects of society, and thus it includes almost all forms of social responsibility. Since the Iraqi National Oil Company Law is a newly legislated law, the Iraqi legislator was directly affected by this modern trend and focused on the importance of paying attention to the good exploitation of natural resources in Iraq and not wasting them in vain for the benefit of the Iraqi people, and not neglecting the rights of future generations. Since Iraq is a country with large oil resources and the National Oil Company is the one that will manage these resources in general and oil resources are the main source of the Iraqi state budget, attention to social responsibility has become a basic requirement to reduce poverty by providing the appropriate environment and not wasting resources and carrying out recruitment and training operations and raising human capabilities and supporting groups in need of housing and the company's intervention in large investments and establishing recreational, agricultural and industrial sectors and protecting the environment by providing what serves the environment. The social responsibility of the Iraqi National Oil Company is directed towards three directions: respecting and preserving the rights of workers in the company, supporting and developing Iraqi society, and preserving and protecting the environment. At the end of the research, we presented a set of results and recommendations, including suggestions for the Iraqi legislator in order to develop forms of social responsibility and its means.

Oil and gas operations are among the most dangerous activities that expose the environment to pollution, because their impact includes all elements of the environment (water, air, and soil), which requires administrative control authorities to take the necessary means and measures in order to preserve the environment from pollution resulting from these operations and activities. The Iraqi legislator, in Law No. 27 of 2009 to protect and improve the environment, set special provisions to confront pollution resulting from oil and gas operations and granted administrative control powers through legal eans and preventive and remedial measures in order to preserve the environment. However, despite the passage of fifteen years since the issuance of this law, only The Ministry of Environment, which has the specific jurisdiction, did not issue instructions to implement the above-mentioned law, which weakened the effectiveness of the environmental administrative control authorities as a result of the stagnation of the text due to the failure to issue these instructions that revive the law by drawing up the executive mechanisms that are supposed to be issued, because the legislator cannot It accommodates all matters in the legislative text, where the instructions come to complete the deficiency and give flexibility for its application. However, the government departments contracting with oil companies under oil licensing contracts have largely taken into account the requirements of preserving the environment by including numerous texts in this regard.

Oil wealth is considered the main engine and lifeblood of developing countries in general, and Iraq in particular. Industrialized countries depend on oil investments to operate their various factories, and since 2010 Iraq has entered a new phase by concluding numerous oil contracts with large international companies specializing in oil, and this still continues, since In 2023 he signed the biggest giant contracts with Total Energy and Qatar Energy to invest in the largest oil field known as the Artawi field.
The greatest concern for the conclusion of Iraqi oil contracts lies in guaranteeing the elements of stability and security and for the continued execution of investment contracts, because the Iraqi general budget, the vital element of the State, has been approved in accordance with constitutional mechanisms for a period of three years fiscal period (2023, 2024, 2025).
This is based on an oil price of $70 per barrel, which is the value the government has adopted in its budget forecasts, as the main reliance is on oil exports to the tune of about 90 percent to finance the budget. It is normal that the stability of financial legislation requires market stability for a sustainable economy in Iraq.

The rules of public international law have provided solutions for disputes arising between states that share common oil fields by establishing legal frameworks that can prevent future disputes or work towards resolving them. This concept is applicable to the shared oil fields between Iraq and Kuwait, as the oil field extends across the borders of two or more states, starting from one state and passing through another, and may partially cross the borders of one or both states. Organizing this matter requires the conclusion of bilateral agreements between the parties exploiting the field. Therefore, the issue of shared oil fields between neighboring countries raises several questions regarding the legitimacy of these fields and the rights of each party to exploit them. It is undeniable that the overlap of oil fields between neighboring states imposes a geographical and oil-related reality, necessitating the conclusion of bilateral agreements and joint exploitation contracts with shares proportional to the amount of oil present in the depths of the fields that extend beyond the borders.

The world has experienced unrestricted economic growth with various energy resources The most important of these resources is oil, which has the primary role in all areas, Such as economic and industrial growth, transport and the nature of oil are also negative environmental, social and economic impacts that require various legal regulations relating to its discovery, extraction, transport, distribution and sale. These regulations are shaped by many laws and regulations at the domestic and international levels dealing with oil and in order to protect and minimize environmental impacts from pollution due to this important resource, namely oil at all stages mentioned above, and important measures. In our field of specialization in financial and tax law, we begin with what God said about pollution in the Holy Koran Ayah 85 (And do not spoil the earth after its reforms.) In addition to the polluter-pays principle, a generally accepted practice is that those who produce pollution must bear the costs of managing it and preventing damage. As a result of the complexity and interconnectedness of the relationship between the environment and the exploration, extraction, transport and sale of oil, the concept of a sustainable environment has emerged to reconcile economic development with the preservation of the environment and resources while ensuring the right of future generations of these resources. In this study we will try to learn about the role of environmental taxes (Green Taxes) in both deterrent and stimulus as a legal and economic tool to achieve sustainable development that takes into account natural resource access and equity in their distribution. Our study will include the general framework of environmental taxes. (green tax) and its role in achieving sustainable development after fighting oil pollution through the following demands:
First requirement: Concept of environmental tax law (green tax).
Second requirement: Objectives for environmental taxation (green tax).
Third requirement: Effects of environmental tax on the environmental and social dimension.

The oil industry is one of Iraq's most important economic sectors. Oil licensing contracts play a crucial role in the exploitation of oil resources in Iraq, and the licensee's commitment to development is one of the essential obligations in these contracts. Therefore, organisational and technological capabilities should be developed to enhance the implementation of the licensed companies' commitment to develop licensed areas and achieve comprehensive development for the benefit of the country. This requires increasing oil production and providing job opportunities, improving infrastructure and developing other sectors, developing local communities (local content) and achieving social and economic balance. This study aims to analyse and evaluate the licensee's commitment to development in oil licensing contracts in Iraq and its impact on the local economy and sustainable development, in addition to analysing the challenges facing the implementation of this commitment in Iraq.

The Associated gas is a form of natural gas found with oil reservoirs, either dissolved in the oil or as a gas cap above the oil in the reservoir. Historically, this type of gas was released as a waste product in the oil extraction industry. Given that many fields are located in remote areas in the wilderness and seas, it was often flared off to dispose of it, a practice known as flaring. This method is controversial because it pollutes the air, exacerbates global warming, and represents a waste of a valuable energy source.
However, this gas can be utilized in several ways after processing, such as being sold, used for electricity generation, injected into the reservoir to enhance or improve oil extraction, or used as a raw material in petrochemical industries.
Iraq ranks second after Russia in the amount of associated gas flared, followed by the United States and then Iran. According to World Bank data, Iraq flared a total of 17.73 billion cubic meters of gas in 2016, which increased to 17.91 billion cubic meters in 2019. The value of the associated gas flared amounts to $18 million per day, with imports estimated at more than 850,000 cubic meters per day. Iraq has recently begun investing in associated gas through Royal Dutch Shell, which extracts oil in four fields in Basra. This was followed by several oil license rounds.
Associated gas investment projects are typically long-term, complex, and require significant capital. Additionally, this sector is highly susceptible to geological events, political changes, and environmental regulations. For these reasons, and because disputes are common in the energy sector, arbitration has become the preferred method for resolving such disputes, especially at the international level, due to its numerous advantages over traditional court proceedings.
Therefore, oil companies often include arbitration clauses in their contracts to achieve these benefits.

There is no doubt that oil and gas supplies are the global energy artery. The international system is working hard and devoting all efforts to protecting the supplies that guarantee energy transfer. Experiences over the past century have proven that the international system, in all its forms and axes, is devoted to oil and gas sources. It stood in the face of extremist movements that sought to undermine these supplies. It also worked to ensure the stability of oil and gas prices during the period of wars between countries. . An example of this is the First Gulf War, the Second Gulf War, and the international coalition led by the United States to overthrow Saddam Hussein’s regime. The markets have become governed by international organizations that ensure the stability of oil and gas prices. Accordingly, we shed light on all these topics during the research.

This research deal with the legal Problems arising from the transportation of Oil by sea, which is represented by choosing the contractual Frame work under which the Oil is transported then choosing the ship that transports Oil. Then charge it from loading plat forms as well as the problems arising From its transfer from the Port of departure to the Port of arrival.

Resorting to arbitration to resolve disputes arising between oil-producing countries and investing companies requires a deep understanding of the types of oil contracts and the terms stipulated within these agreements.
Upon reviewing the oil contracts that oil-producing states have concluded with investing companies, it becomes apparent that the most disadvantageous of these are concession contracts due to the numerous unfavorable conditions they contain, which are not in the interest of the producing country. For Iraq, no oil and gas law has yet been enacted, despite its significance, as oil revenues constitute 95% of Iraq’s national income. Therefore, it is recommended that the state expedite the issuance of this law, which should be applied across all regions of Iraq .Additionally, Iraq ratified the New York Convention of 1958 in 2018. This means Iraq can leverage the convention in cases of disputes between the Iraqi state and foreign investing companies by resorting to international arbitration under this agreement. It is advisable to include a clause in oil contracts that the Iraqi government signs with investing companies in Iraq for international arbitration.
The issue of arbitration in oil disputes between producing states and investing companies is complex and requires a precise understanding of oil contract details. Concession contracts, as a form of oil contract, are often detrimental to the interests of producing states, as they grant investing companies substantial benefits that may result in an imbalance in profit distribution.
For Iraq, the delay in enacting an oil and gas law is a significant challenge, especially given that oil revenues make up 95% of Iraq’s national income. Thus, expediting the passage of this law has become an urgent necessity to ensure Iraq’s oil rights when concluding agreements with oil-producing companies in Iraq.
It is noteworthy that Iraq ratified the New York Convention of 1958 in 2018, which means that Iraq can utilize international arbitration to settle disputes with foreign investing companies. It is advisable to include a specific clause for international arbitration when concluding oil contracts signed by the Iraqi government with investing companies to ensure better protection of the state's oil interests, which are the wealth of all Iraqis and which the Iraqi government has a duty to protect.

In this study, we will consider the administrative body responsible for managing, extracting and organizing oil activities and oil operations, whose composition and tasks are covered by current legislation in Iraq. It is worth noting that there are two similar facilities, the first is the Iraqi Ministry of Oil and its affiliated agencies, and the second is a regional body represented by the Regional Council for Oil and Gas Affairs. In the Kurdistan Region, the Ministry of Natural Resources and oil-related public companies, the two facilities or facilities operate independently of each other and without unified cooperation or direction between them, Since (oil and gas wealth) belongs to the entire Iraqi people, it must be pointed out that the approach followed by the two authorities is (as it was pointed out that there is a lack of compatibility between the legislation regulating hydrocarbon wealth in the Republic of Iraq and the existing institutions, so the current legislation needs to be reconsidered. In it, or in the current draft of oil and its derivatives.

The economic development of any State that is fundamentally linked to the main source of that economy, the hydrocarbon States have a major role to play in their economies in a positive and negative manner in natural and exceptional circumstances. The challenges facing the Republic of Iraq as one of the countries at the forefront of its hydrocarbon wealth reflect that wealth as the foundation of its economy, the circumstances that the Republic of Iraq has experienced since its establishment and the reflection of international and regional positions on Iraq hydrocarbon sources.
In order for the penal legislature to stand up to the right position, it is necessary to provide penal protection for this wealth, which ensures that it is maintained against any attack against it, given that this attack affects protected interests, since the special interests of hydrocarbon wealth are not only economic but also special interests of a dual nature economic, political, security and terrorist interest, which is a single characteristic of these interests and which does not have any other interest.

The subject of this research paper is presented specifically at the eleventh scientific conference And the third one in the Al-kunooze University College on the third axis - Criminal legislation. That criminal responsibility was not known for a long time except for natural people, but moral persons was the subject of great controversy in the various legislations, and those legislations were divided between supporters and opponents, and some legislation came and recognized the criminal responsibility of people for morality in the minimits. Hence the importance of this responsibility, especially in the crimes of oil wealth, which threaten the supreme interests of the country. Hence, the legislator aspires to protect them with criminal provisions and address them with decisive legislation and a deterrent punishment.

The Since all oil and gas resources within the territories of the Republic of Iraq and its maritime areas belong to the people of the Republic of Iraq as a whole, and the State of Iraq serves as the sole representative of the Iraqi people, the Iraqi government holds the exclusive right to explore, develop, extract, exploit, and utilize those natural resources found therein.
Furthermore, the South Oil Company, representing its role as a government-owned Iraqi oil and gas company, is exclusively authorized and empowered to develop and produce the Rumaila oil field under the law. This necessitates the arrangement of obligations on both parties to the contract in question.

Aspecific Refered Journal Published by the center of Basra Studies &Arab Gulf / Issned in Cooperation With College of Law Basrah University