Research 2 ILIC 2019

Abstract:  International oil and gas companies continuously try to sign contracts especially with countries that are wealthy in petroleum resources. Kurdistan Region of Iraq is one of the wealthy example in oil and gas area; several international oil and gas companies have invested in it. Petroleum contracts are known for their longevity, some may last more than 30 years and some other contracts have been signed for more than 60 -70 years. Undoubtedly, in this extensive period, one should assume occurrences of varying disputes and thinking of their resolutions; hence, the need for methods and implementations that are ought to be placed in the contracts appropriately.
Therefore, the main aim of this study is to identify the best method (form) to resolve disputes relating to oil and gas sector. Furthermore, to highlight complications and negative provisions of the Kurdistan oil and gas Law and contracts concerning dispute resolution and drafting a complete and proper clause for dispute resolution in petroleum contracts. Despite confidentiality of arbitration procedure, another aim of the study is to clarify the details of dispute between Kurdistan Region of Iraq and Pearl Petroleum Company Limited (Dana Gas and Crescent Petroleum), as well as clarifying the solved dispute that it may be beneficial for future arising disputes.
Throughout this study, it has tried to answer a number of questions which are:
1. What are the methods (form) of dispute resolution for oil and gas sector? Which one is the most preferred and most prevalent method?
2. How can draft a proper dispute resolution clause in oil and gas contracts?
3. How do Kurdistan oil and gas Law and contracts regulate dispute resolution? What are the main complications and negative provisions of them?
4. What the dispute between Kurdistan Region of Iraq and Pearl Petroleum Company Limited was about? How did they resolve the case?
Key Words: Kurdistan Region of Iraq, the Kurdistan Oil and Gas Law, The Kurdistan Regional Government Model Production Sharing Contract, Dana Gas and Crescent Petroleum, Dispute Resolution, Arbitration.