Under the Investment in Crude Oil Refining Law No. (64) of 2007, amended by Laws No. (10) of 2011 and No. (35) of 2016, this law aims to encourage the private sector to participate in Iraq's economic development process and increase investment opportunities for both Iraqi and foreign private sectors. It also seeks to expand private sector participation in crude oil refining activities to increase local production capacities of oil derivatives, improve quality, and reduce shortages and bottlenecks in government refineries.

Key Points of the Law:

1. Establishing and Operating Refineries: The law permits the private sector to establish refineries for crude oil refining, own their facilities, operate them, manage them, and market their products, with the exception of owning the land. The private sector includes Iraqi companies established under the Companies Law No. (21) of 1997, foreign companies with acceptable financial and technical capabilities approved by the Ministry of Oil, and any coalition between these companies.
2. Employment of Local Workforce: The investing company is required to employ Iraqi staff at a rate of no less than 75% of the total workforce.
3. Technical Level of the Refinery: Refineries must have an advanced technical level, and the production of heavy oil derivatives should not exceed 20%.
4. Supplying Refineries with Crude Oil: The Ministry of Oil will supply the constructed refineries with suitable crude oil for their operational capacity under a contract between the ministry and the investing company, at the global prices determined for the sale of one barrel of oil.
5. Transportation Pipelines: The refinery will be supplied with crude oil through pipelines from the nearest suitable point to the refinery. The investing company will bear the cost of constructing a pipeline between the delivery point and the refinery.
6. Quality Measurement and Control: The measurement and control facilities are subject to periodic inspection and calibration by a third party approved by the Ministry of Oil.
7. Product Trade: The investing company has the right to set the prices of its oil products according to prevailing global prices in the region and can sell or export them to external markets. The Ministry of Oil has the priority to purchase what it needs from the products.
8. Leasing Land: The investing company can lease the necessary land for the project from the state or municipalities. A suitable land plot will be allocated to the company for a period not exceeding 50 years, renewable, and leased according to the Law on the Sale and Lease of State Funds No. (21) of 2013, as amended.

Application Submission and Privileges:

• Investment applications are submitted to the Ministry of Oil and are decided upon by a specialized committee within a period not exceeding three months.
• The project enjoys all the privileges, exemptions, and guarantees stipulated in the Investment Law No. (13) of 2006, as amended.

Special Investment Conditions:

• The Ministry of Oil contracts with investors under agreements that include supplying the investor with crude oil and receiving oil products according to global specifications, in exchange for a commission representing operating fees plus a suitable profit.

Exceptions:

• According to Article (29) of the Investment Law No. (13) of 2006, as amended, the fields of crude oil extraction and production, as well as investment in the banking and insurance sectors, are subject to exceptions from the provisions of the law.

Conclusion

Refineries or hydrogenation projects can be established under the Investment Law No. (13) of 2006, as amended, as the refinery sector is not included in the exceptions stated in Article (29) of the law.