friday, 25 january of 2019


Iraq Federal Supreme Court rules portions of National Oil Company law unconstitutional

Iraq’s Federal Supreme Court ruled on Wednesday that several articles of the Iraq National Oil Company Law were unconstitutional.

The law is meant to establish the Iraq National Oil Company as a public company owned by the state for oil and gas production and development. The unconstitutional articles related to the objectives of the company and the process of marketing. Articles 3, 4, 7, 8, 11, 12, and 18 were found to violate various portions of the Constitution. Article 16 was also found to violate current existing laws. The ruling is expected to delay the restructuring of the oil and gas industry in Iraq.

Article 3 discuses the objectives of the company and the methods for implementing the objectives are in Article 4. The leadership of the company is determined in Article 7 with the duties of the Board of Directors determined in Article 8. Articles 11 and 12 discuss costs and revenues. Article 13 excludes employee incentives from the Law of Salaries. Article 16 excludes the company from various laws, including Financial Management Law and Customs Law. Article 18 allows the company to use its land for agriculture and industrial purposes.

Articles 3, 4, 8, 11, and 12 were found to violate Article 112 of the Constitution, which gives the federal government the authority to manage extracted oil and gas. Articles 11 and 12 were found to also violate Article 111 of the Constitution, which declares that oil and gas are owned by the people of Iraq. Articles 8, 11, 12, and 18 were found to violate Articles 78 and 80 of the Constitution, which discusses the responsibilities of the Prime Minister and the Council of Ministers.

(Published by Jurist, January 24, 2019)

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