Establishing Companies for Oil & Gas
The establishment of companies operating in the oil and gas sector in Iraq is governed by the Iraqi Companies Law No. 21 of 1997 (as amended) and subject to additional sector-specific regulations issued by the Ministry of Oil and its affiliated national oil companies. Oil and gas activities are treated as strategic activities and therefore require special approvals, technical qualifications, and compliance with Iraqi licensing procedures.
Legal Basis & Regulatory Authorities
- Company Establishment (Corporate Law)
- Foreign companies may register a branch or incorporate an LLC
- Local companies may operate as LLC or JSC
- Registration occurs with the Registrar of Companies
- Social Security and Tax Authority registrations are mandatory post-establishment
- Sector Licensing & Approvals (Oil & Gas Law & Ministry Regulations)
- Ministry of Oil
- Basra Oil Company (BOC)
- North Oil Company (NOC)
- Oil Projects Company (SCOP)
- Iraqi Drilling Company (IDC)
Companies performing technical or operational activities must obtain approval to perform work with these national oil companies (NOCs) and may need to be listed in their Approved Vendor Lists.
Sector-Specific Regulatory Requirements
✔ Licensing & Qualification
- Technical capability and experience evidence
- HSE certifications (ISO, IADC, OSHA when applicable)
- Iraqi staff employment commitments
- Space & logistical capability in Iraq
✔ Commercial Registration Obligations
- General Commission for Taxes
- General Social Security Department
- Chamber of Commerce
- Ministry of Oil (for technical approvals) when applicable
✔ Local Content Requirements
- Companies must employ Iraqi nationals in certain roles
- Training & capability programs may be requested
- Certain subcontracting may require Iraqi participation
Common Activities Authorized Under Iraqi Regulation
- EPC contracting
- Well drilling & services
- Oilfield services & maintenance
- Field logistics & chemical supply
- Engineering & technical consultancy
- HSE & training services
How Etihad Can Assist
Etihad provides legal and regulatory advisory services to banks, financial institutions, and businesses, supporting compliance with applicable laws, regulations, and regulatory guidance issued by any competent authorities.