Научная статья на тему 'COMPARATIVE CHARACTERISTICS OF THE LEGAL AND REGULATORY FRAMEWORK OF THE OIL INDUSTRY IN SUDAN AND AZERBAIJAN'

COMPARATIVE CHARACTERISTICS OF THE LEGAL AND REGULATORY FRAMEWORK OF THE OIL INDUSTRY IN SUDAN AND AZERBAIJAN Текст научной статьи по специальности «Экономика и бизнес»

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Sudan / Azerbaijan / The oil industry development / The legal frameworks / Legislations / and Oil policies

Аннотация научной статьи по экономике и бизнесу, автор научной работы — Adam Abdelsamad

The oil industry is one of the industries that contribute strongly to the economic and social development of any oil country at the present time. Oil has also become a strategic commodity with geopolitical and strategic dimensions. However, this industry is also known as a source of emissions and pollutants, and it also constitutes political instability if it is not managed in the right way. optimum. This article aims to compare the legal frameworks, policies, and legislation in the oil sector in both Sudan and Azerbaijan, whichever has the ability to contribute to the development of the oil industry in a sustainable manner that meets the requirements of economic and social development. The article used descriptive and analytical research methods that were relied upon to obtain the necessary information and data and analyze them through secondary sources, such as reports and related studies. It found that there are some discrepancies in the legislation and legal frameworks related to the oil development industry in both Sudan and Azerbaijan. The article also found Azerbaijan has more experience in applying laws and legislations to develop the oil industry, which was clearly reflected in the development of the oil industry and its contribution to sustainable economic and social development, while the article found that there is a clear weakness in the laws and legislations related to the development of the oil industry in Sudan, which negatively affected the development of the oil industry And led to a diminished contribution to economic and social development. The article recommended the need to benefit from the Azerbaijani experience in the field of legislation and legal frameworks in order to promote the development of the oil industry in Sudan to achieve maximum benefit from this sector in economic and social development and the sustainability of political stability.

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Текст научной работы на тему «COMPARATIVE CHARACTERISTICS OF THE LEGAL AND REGULATORY FRAMEWORK OF THE OIL INDUSTRY IN SUDAN AND AZERBAIJAN»

COMPARATIVE CHARACTERISTICS OF THE LEGAL AND REGULATORY FRAMEWORK OF THE OIL INDUSTRY IN SUDAN AND AZERBAIJAN

ADAM ABDELSAMAD

Baku State University, Faculty of Geography, Department of Economic and Social Geography

Baku, Azerbaijan adam.abdelsamad@gmail.com Mobile phone: +994504493382 https://orcid.org/0000-0003-1359-7486

Abstract:

The oil industry is one of the industries that contribute strongly to the economic and social development of any oil country at the present time. Oil has also become a strategic commodity with geopolitical and strategic dimensions. However, this industry is also known as a source of emissions and pollutants, and it also constitutes political instability if it is not managed in the right way. optimum. This article aims to compare the legal frameworks, policies, and legislation in the oil sector in both Sudan and Azerbaijan, whichever has the ability to contribute to the development of the oil industry in a sustainable manner that meets the requirements of economic and social development.

The article used descriptive and analytical research methods that were relied upon to obtain the necessary information and data and analyze them through secondary sources, such as reports and related studies. It found that there are some discrepancies in the legislation and legal frameworks related to the oil development industry in both Sudan and Azerbaijan. The article also found Azerbaijan has more experience in applying laws and legislations to develop the oil industry, which was clearly reflected in the development of the oil industry and its contribution to sustainable economic and social development, while the article found that there is a clear weakness in the laws and legislations related to the development of the oil industry in Sudan, which negatively affected the development of the oil industry And led to a diminished contribution to economic and social development.

The article recommended the need to benefit from the Azerbaijani experience in the field of legislation and legal frameworks in order to promote the development of the oil industry in Sudan to achieve maximum benefit from this sector in economic and social development and the sustainability of political stability.

Keywords: Sudan, Azerbaijan, The oil industry development, The legal frameworks, Legislations, and Oil policies.

1-INTRODUCTION:

Since oil has become a global strategic commodity and plays a vital role in the global economy, the oil state has confined itself to preserving it and regulating its exploitation through the development of laws and legislation that help in that. No natural resource has received more legislative and legal attention than oil.

The leading countries in the oil industry around the world have sought from the beginning to issue legislation and laws that regulate their oil industry sector, for example in the United States the first law related to the oil sector in the world was the Sherman Antitrust Act of 1890(Iheukwumere et al., 2020). The law was enacted to prevent monopolies and promote competition in the oil marketplace. while in the Russian Federation, the first law related to the oil industry in the Soviet Union was the Decree on the Nationalization of Oil of 1918(Cooper et al., 2003), this decree declared that all oil resources and related industries in Soviet territory were nationalized and became the property of the state, while in Great Britain there Was the Petroleum Act of 1871(Manson Hugo, 2006). The act was passed to regulate the production, storage, and

transportation of petroleum in the country, which had become increasingly important as an energy source., and on the other side of the North Sea, we found that the Norwegian Parliament had issued the Continental Shelf Act of 1963(Overland, 2017). The act was passed to establish Norway's sovereign rights over its continental shelf and to regulate the exploration and production of oil and gas resources in the Norwegian sector of the North Sea., and in Azerbaijan, the first law related to the oil industry in Azerbaijan was the Law on the Use of Subsoil Resources, which was passed in 1994, This law established the legal framework for the exploration, development, and production of subsoil resources in Azerbaijan, including oil and gas(Christopher, B, 2013).

After that, many regulations and legislation related to the sectors related to the oil industry resulted, such as environmental protection laws, investment laws, and the distribution of oil revenues, in addition to laws and agreements governing the sharing of oil fields between countries, as is the case in the Caspian Sea, the North Sea, as well as common fields between some countries(Hassanov et al., 2011)(Nakhle, 2004) and The Arabian Gulf. In sub-Saharan Africa, we find some legislation and agreements related to the crossing of oil pipelines, as is the case between Sudan and the state of South Sudan after separation.

This article provides a systematic analysis of the legal and legislative frameworks for the oil sector in both Sudan and Azerbaijan through a comparison between them in terms of the environmental and investment aspects, the employment system, exploration rights, and the institutions responsible for managing the sector in the two countries.

2- MATERIAL AND METHODS:

To achieve the objectives of this study, Descriptive and analytical research methods were relied upon to obtain the necessary information and data and analyze them from secondary sources, such as reports and related studies.

3-OVERVIEW OF LAWS AND REGULATIONS OF THE OIL INDUSTRY DEVELOPMENT IN AZERBAIJAN:

Within the framework of the legal legislation that governs the oil and gas industry sector in Azerbaijan, we find that there is a law of the subsoil and this law governs the operations of exploration, use, protection, safety, and supervision of the use of subsoil resources, for example, but not limited to, and this law also authorizes the Ministry of Industry and Energy in Azerbaijan to: On behalf of the state in organizing and implementing state policy in the oil industry sector(Christopher, B, 2013).

Legislation related to the oil and gas industry in Azerbaijan is limited to environmental protection and taking into account the resulting dangers. Subsoil operations may be restricted or prohibited, including operations in oil and gas fields, as these operations may threaten national security, life and health of people and the environment(IEA, 2009)Azerbaijani Regulations of Energy Resources.

Azerbaijani Law On Use of Energy Resources (Energy Resources Law), the Law On Subsoil (Subsoil Law), and the Law On Energy (Energy Law) are three main laws on the development, use, and disposal of sources of energy, including oil and gas(Mustafayev, 2015). Most provisions of the Energy Resources Law are of declaratory nature - they do not contain specific requirements with respect to the development of reservoirs. In particular, the Energy Law proclaims the government's intention to achieve the efficient use of natural resources.

The Energy Law contains more specific provisions. It provides that any person, who wants to engage in the energy business, must either obtain a license from the relevant government authority or enter into an "energy contract" with the relevant authority. The Energy Law governs "energy contracts". Energy contracts are entered into between contractors and the respective government authority of Azerbaijan. The agreements on exploration, development and use of natural resources,

such as oil and gas, are considered energy contracts(AKM$, 2019). Under the Energy Law, energy contracts are awarded on competitive basis or as a result of negotiations.

4- OVERVIEW OF LAWS AND REGULATIONS OF THE OIL INDUSTRY DEVELOPMENT IN SUDAN:

The oil industry in Sudan is governed by a set of laws and regulations that aim to promote sustainable development, protect the environment, and ensure the equitable distributio n of benefits. Here is an overview of the key laws and regulations governing the oil industry in Sudan:

The Petroleum Act1998: This law provides the legal framework for the exploration, production, and transportation of petroleum in Sudan. The act establishes the rights and obligations of companies engaged in petroleum activities and outlines the procedures for granting and revoking licenses(Abdalla et al., 2013).

The Petroleum Revenue Management Regulations: These regulations provide guidelines for the management of revenue generated from the oil industry in Sudan. The regulations aim to ensure transparency and accountability in the management of oil revenue and to promote the equitable distribution of benefits.

The Environmental Protection Act2001: This law establishes the legal framework for environmental protection in Sudan, including in the oil industry(SALIH, 1990). The act sets out environmental standards and requirements for oil and gas companies operating in Sudan.

The Labor Law 1997: This law governs the employment relationship between employers and employees in Sudan, including in the oil industry. The law outlines the rights and obligations of employers and employees, including provisions related to working conditions, health and safety, and remuneration.

The Investment Act1999: This law regulates foreign investment in Sudan, including in the oil industry. The act sets out the procedures for obtaining investment licenses and provides guarantees for the protection of foreign investors' rights.

The Petroleum Exploration and Production Sharing Agreement (EPSA)1997: The EPSA is a contract between the government of Sudan and oil companies that grants them the right to explore, develop, and produce petroleum in a designated area. The EPSA sets out the terms and conditions of petroleum activities, including fiscal terms, environmental requirements, and local content provisions.

Overall, these laws and regulations provide a comprehensive legal framework for the oil industry in Sudan. However, the implementation and enforcement of these laws and regulations have faced various challenges related to political instability, corruption, and inadequate institutional capacity. Efforts are ongoing to address these challenges and enhance the governance of the oil industry in Sudan.

5-RESULT& DISCUSSION: 1-5COMPARISON BETWEEN SUDAN AND AZERBAIJAN IN THE DEVELOPMENT OF LEGAL FRAMEWORKS AND LEGISLATION FOR THE OIL INDUSTRY: 1-1-5 ENVIRONMENTAL PROTECTION:

Environmental protection is an important issue for the oil industry in Azerbaijan, as the industry can have significant environmental impacts if not managed properly. Azerbaijan has a rich oil and

gas industry, and the country has implemented various measures to protect the environment and mitigate the negative impacts of oil production and exploration(Requirements, 2002).

Some of the measures implemented by Azerbaijan to protect the environment include:

Environmental regulations, Azerbaijan has established a legal framework that sets standards for environmental protection in the oil and gas sector. The country has implemented regulations and guidelines to ensure that companies comply with environmental requirements.

Environmental Impact Assessments (EIAs): Companies operating in Azerbaijan are required to conduct EIAs to identify potential environmental impacts associated with their activities(Bodrova et al., 2020). The results of these assessments are used to develop mitigation measures and ensure that the activities are conducted in an environmentally responsible manner.

Environmental monitoring: Azerbaijan has established an environmental monitoring program to track the impact of oil and gas activities on the environment(Azerbaijan.Pdf, n.d.). The program includes monitoring of air and water quality, as well as soil and vegetation conditions.

Clean technologies: Azerbaijan has encouraged the use of clean technologies in the oil and gas industry to minimize the environmental impact of oil production and exploration. This includes the use of advanced drilling technologies, improved waste management practices, and the use of renewable energy sources.

Public participation: Azerbaijan has involved the public in decision-making processes related to oil and gas activities(MENR, 2002). This includes public consultations on environmental impact assessments and the development of environmental regulations.

Overall, Azerbaijan has taken significant steps to protect the environment in the oil and gas sector. However, there is still room for improvement, and efforts are ongoing to further enhance environmental protection measures and minimize the negative impacts of oil and gas activities on the environment.

2-1-5 ADMINISTRATIVE AND ORGANIZATIONAL STRUCTURES:

The oil industry in Azerbaijan is overseen by the State Oil Company of Azerbaijan Republic (SOCAR), which is responsible for managing the country's oil and gas resources. SOCAR is a vertically integrated company, with operations spanning the entire value chain from exploration and production to refining and marketing(Alekperov, 2018).

In addition to SOCAR, there are a number of other organizations involved in the administration and organization of the oil industry in Azerbaijan. These include:

Ministry of Energy: The Ministry of Energy is responsible for setting policies and regulations related to the oil and gas sector, and for overseeing the activities of SOCAR and other companies operating in the sector.

Azerbaijan National Academy of Sciences: The Academy is involved in research related to the oil and gas industry, including exploration and production technologies, and environmental and social impact studies.

Azerbaijan State Oil Fund: The State Oil Fund manages the country's oil and gas revenues and is responsible for investing these funds in a range of domestic and international projects.

Azerbaijan Caspian Shipping Company: The Shipping Company provides logistical support for the oil and gas industry, including the transportation of oil and gas equipment and supplies.

Azerbaijan International Operating Company: The International Operating Company is a consortium of oil companies that operates the Azeri-Chirag-Gunashli oil field, one of the largest oil fields in Azerbaijan.

At the operational level, the oil industry in Azerbaijan is structured around a number of exploration and production companies, many of which are joint ventures between SOCAR and international oil companies(AKM$, 2019). These companies are responsible for managing specific oil and gas fields, and for conducting exploration and production activities in accordance with the terms of their licenses and contracts.

Overall, the administrative and organizational structures of the oil industry in Azerbaijan are designed to promote effective management of the country's oil and gas resources, while also providing opportunities for private investment and international cooperation.

The oil industry in Sudan is overseen by the Ministry of Petroleum and Gas, which is responsible for managing the country's oil and gas resources. The ministry is also responsible for developing policies and regulations related to the oil industry, as well as for negotiating contracts with foreign oil companies.

The administration and organization of the oil industry in Sudan also involve several other organizations and institutions, including:

Sudanese Petroleum Corporation (SPC): The SPC is a state-owned company that is responsible for managing the country's oil production and exports. The company also oversees the construction and operation of oil pipelines and storage facilities(Lado, 2002).

Greater Nile Petroleum Operating Company (GNPOC): The GNPOC is a consortium of oil companies that operates the oil fields in the southern part of the country, including the Heglig, Unity, and Toma South oil fields.

Petrodar Operating Company: The Petrodar Operating Company is a consortium of oil companies that operates the oil fields in the eastern part of the country, including the Melut, Munga, and Toma South oil fields.

The Ministry of Finance is responsible for managing the country's finances, including the allocation of funds for the development of the oil industry(Willis, 2015).

Sudanese Standards and Metrology Organization: The organization is responsible for setting standards related to the quality and safety of oil production and transportation in Sudan.

At the operational level, the oil industry in Sudan is structured around a number of exploration and production companies, many of which are joint ventures between foreign oil companies and the SPC. These companies are responsible for managing specific oil fields and for conducting exploration and production activities in accordance with the terms of their contracts and licenses.

Overall, the administrative and organizational structures of the oil industry in Sudan are designed to promote effective management of the country's oil resources, while also providing opportunities for private investment and international cooperation(State, 2013). However, the industry has faced a number of challenges related to governance, transparency, and human rights, which have impacted its ability to attract investment and operate effectively.

3-1-5 FOREIGN INVESTMENT DISTRIBUTION OF OIL REVENUES:

Sudan is a country that has significant oil reserves, and foreign investment has played a crucial role in the development of its oil industry. However, the distribution of oil revenues in Sudan has been a topic of controversy, and the issue has been further complicated by political instability, civil war, and sanctions.

Foreign investment in Sudan's oil industry started in the late 1990s, and the government signed contracts with international oil companies, such as China National Petroleum Corporation (CNPC), Petronas, and India's Oil and Natural Gas Corporation (ONGC). These companies provided the technology and expertise necessary for oil exploration, drilling, and production.

Foreign investment in Sudan's oil industry has helped the country to become one of the leading oil-producing nations in Africa. The oil industry accounts for a significant portion of Sudan's GDP, exports, and government revenues.

However, the distribution of oil revenues in Sudan has been a topic of controversy. Critics argue that the wealth generated by the oil industry has been concentrated in the hands of the political elite and their allies, while the majority of the population has not benefited. The country has also been plagued by political instability, civil war, and sanctions, which have further complicated the issue of oil revenue distribution.

In recent years, the government of Sudan has taken steps to address these concerns. For example, it has implemented social programs and infrastructure projects to improve the lives of ordinary citizens. The government has also created a sovereign wealth fund, the Sudan Sovereign Wealth Fund (SSWF), to manage the country's oil revenues and invest in long-term projects for the benefit of future generations.

However, progress has been slow, and the issue of oil revenue distribution remains a complex and challenging problem. Political instability, corruption, and the ongoing civil war have made it difficult to implement reforms and ensure that the benefits of the oil industry are shared more equitably among the Sudanese population.

Table(1):Mian of the oil companies in Sudan

Consortium/Subsidiary Company Country of Origin Share (percent)

CNPC China 40

Petronas Malaysia 30

Greater Nile Petroleum Operating Company (GNPOC) ONGC India 25 %

Sudapet* Sudan 5 %

Nilepet* South Sudan 5 %

Dar Petroleum Operating Company (DPOC) CNPC China 41 %

Petronas Malaysia 40 %

Nilepet South Sudan 8 %

Sinopec China 6 %

Egypt Kuwait Holding Egypt 3.6 %

Other partner(s) -- 1.4 %

Sudd Petroleum Operating Company (SPOC) Nilepet South Sudan 41.9 %

Petronas Malaysia 33.9 %

ONGC India 24.1 %

Petro Energy E&P CNPC China 95 %

Sudapet Sudan 5 %

Star Oil Ansan Wikfs Yemen 66 %

Sudapet Sudan 34 %

Source: Ministry of Energy& Petroleum,2022

Azerbaijan is a country that has a significant amount of oil reserves, and foreign investment has played an important role in the development of its oil industry. The distribution of oil revenues in Azerbaijan has also been a topic of interest, as it has had a significant impact on the country's economy and society.

Foreign investment in Azerbaijan's oil industry started in the early 1990s, after the country gained independence from the Soviet Union. The government of Azerbaijan opened up the oil industry to foreign companies and signed contracts with international oil companies, such as BP, ExxonMobil, and Total. These companies provided the technology and expertise necessary for oil exploration, drilling, and production.

The foreign investment in Azerbaijan's oil industry has helped the country to become one of the leading oil-producing nations in the world. The oil industry accounts for a significant portion of Azerbaijan's GDP, exports, and government revenues(Ciarreta & Nasirov, 2012).

However, the distribution of oil revenues in Azerbaijan has been a topic of controversy. While the government has implemented some policies to ensure that the revenues are distributed fairly, there are concerns about corruption and inequality in the distribution of oil revenues. Some critics argue that the wealth generated by the oil industry has been concentrated in the hands of a small elite, while the majority of the population has not benefited.

In recent years, the government of Azerbaijan has taken steps to address these concerns. For example, it has implemented social programs and infrastructure projects to improve the lives of ordinary citizens. The government has also created a sovereign wealth fund, the State Oil Fund of Azerbaijan (SOFAZ), to manage the country's oil revenues and invest in long-term projects for the benefit of future generations.

Overall, foreign investment has played a significant role in the development of Azerbaijan's oil industry, but the distribution of oil revenues remains a complex issue that the government continues to address.

Table (1): Mian of the oil companies in Azerbaijan Republic.

Name of company Country Share (percent)

Chevron US 9.57%

British Petroleum ( BP) UK 30.37%

State Oil Company of the Republic of Azerbaijan( SOCAR) Azerbaijan 25%

INPEX Corporation (INPEX) Japan 9.31%

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Statoil & Statoil Hydro Norway 7.27°%

ExxonMobil Corporation US 6.79°%

Turkish Petroleum Corporation Turkey 5.73%

Itochu Corporation Japan 3.65%

Oil and Natural Gas Corporation India 2.31%

Source: The Ministry of Energy of the Republic of Azerbaijan,2022. 4-1-5 Employment:

According to the Sudanese government, the oil industry directly employs around 100,000 people, with many more jobs created indirectly in sectors such as transportation, logistics, and services. The oil industry is also a significant source of government revenue, which can be used to fund social programs and infrastructure development, leading to the creation of additional employment opportunities (Ministry of Energy& Petroleum,2022).

There are no indication that there are legislative and legal articles that determine the size and percentage of local workers in the various oil sectors or foreign and governmental companies in Sujan, with the exception of those provisions contained in the General Comprehensive Peace Agreement within the protocol for the division of wealth and power between the Sudanese government and the Sudan People's Liberation Movement at the time, where he indicated To the need to create jobs for the people of the oil fields in the international and local oil companies operating in the oil industry in Sudan.

On the other hand, we find that the NOC and the Ministry of Oil, as oversight bodies, have not been given any right by legislation and laws to interfere in recruitment processes or determine the percentage of local and foreign employment in the oil sector. Most of what is done is in the form of non-binding cooperation agreements for oil companies to provide training opportunities or contracts. Temporary work.

Accordingly, it can be said that the laws and legislations related to the oil sector did not impose any conditions on companies, whether local or foreign, with regard to employment or determining the percentage of employment in the oil sector.

The oil sector has traditionally been an important source of employment in Azerbaijan, and it continues to be a significant contributor to the country's economy. According to the State Statistics Committee of Azerbaijan, in 2020, the oil and gas industry accounted for around 7.6% of the country's GDP and employed approximately 40,000 people (Ministry of Energy,2022).

There are several laws and regulations related to employment in the oil sector in Azerbaijan, which are designed to ensure that employees are protected and that companies adhere to labor standards. Some of the key laws and regulations include:

The Labor Code of Azerbaijan: This law establishes the general framework for labor relations in Azerbaijan, including provisions related to employment contracts, working hours, wages, and social benefits. The Labor Code applies to all sectors of the economy, including the oil and gas industry.

Law on Labor Protection: This law sets out the minimum standards for workplace safety and health, including requirements for employers to provide a safe working environment, personal protective equipment, and training on occupational hazards(REPUBLIC OF AZERBAIJAN Ministry of Labor and Social Protection of Population AZERBAIJAN EMPLOYMENT SUPPORT PROJECT ENVIRONMENTAL AND SOCIAL, 2019). The Law on Labor Protection applies to all sectors of the economy, including the oil and gas industry.

Law on Oil and Gas: This law sets out the regulatory framework for the oil and gas industry in Azerbaijan, including provisions related to employment. The law requires oil and gas companies to comply with labor laws and regulations and to provide employees with safe working conditions, appropriate remuneration, and social benefits.

Decree on the Rules of Recruitment in the Oil and Gas Industry: This decree sets out the procedures for the recruitment of personnel in the oil and gas industry, including requirements for job advertisements, selection criteria, and hiring procedures.

In addition to these laws and regulations, there are also various industry-specific codes and guidelines related to employment in the oil sector in Azerbaijan, which are developed by industry associations and trade unions in consultation with the government.

5-1-5 EXPLORATION AND PRODUCTION RIGHTS:

In most of countries that have natural resources on their lands, their constitutions stipulate the government's sovereignty over these resources and their protection, and strive to find the best ways to extract these underground resources to bring about the necessary economic and social development in the country. In oil-producing countries such as Sudan and Azerbaijan, for example,

we find that the state, through its various institutions, assumes the task of supervising natural resources, including the oil sector, as stipulated in the constitutions of each of them and the legislations and laws that follow from that pertaining to this oil sector, for example. In Sudan, despite the constitutional and legislative changes and the lack of a permanent constitution for the country since independence(Abdalla et al., 2013), we found that legislation and laws related to the oil sector stipulated the role of the government and its right to grant concession rights to exploration companies, whether national or foreign. It should be noted here the most important aspects related to exploration and production in these laws and legislations, for example the Petroleum Wealth Law of 1972, which repealed the Petroleum Wealth Development Law of 1958. This law stipulates that the Sudanese government, represented by the Petroleum Affairs Council, is the one that grants licenses after the signature of the President of the Republic. On these requests submitted by the companies, the Council monitors these companies during the exploration and production operations and issues penalties in the event of legal violations.

The law also stipulates that the area granted to the exploration company should not exceed 800 km in a rectangular shape as a maximum, and that the license period should not exceed four years. The law stresses the need for the licensee to notify government agencies immediately in the event of finding mineral ores and natural resources other than oil, and he is not entitled to exploit them under this law.

The Petroleum Wealth Law of 1998, which repealed the Petroleum Wealth Law of 1972, came with the observation that this law did not differ much with the law in aspects related to exploration and production, as it kept many causes related to that, but it expanded the provisions of drafting some exploration articles in order to be more comprehensive. Keeping abreast of developments in the field(Ministry of Justice, 1998).

Azerbaijan as a major producer of oil and natural gas, with a long history of exploration and production in the sector. The country has a significant number of oil and gas fields, located primarily in the Caspian Sea and onshore in the Absheron Peninsula.

The exploration and production of oil in Azerbaijan is governed by the State Oil Company of Azerbaijan Republic (SOCAR), which is responsible for managing the country's oil and gas resources. SOCAR operates in partnership with a number of international oil companies, including BP, Total, and Equinor, among others(Alekperov, 2018).

Companies that are interested in exploring for and producing oil in Azerbaijan must obtain a license from the Azerbaijani government. The licensing process involves submitting an application to the Ministry of Energy, which is responsible for managing the country's oil and gas sector. The application must include information on the company's experience and financial resources, as well as details on the proposed exploration or production activities.

Once a license is granted, the company is responsible for conducting the exploration or production activities in accordance with the terms of the license, as well as any relevant laws and regulations. This may include requirements related to environmental protection, safety, and labor standards.

Azerbaijan has also established a number of incentives to encourage investment in the oil and gas sector. These include tax breaks, subsidies for exploration activities, and other financial incentives. The government has also worked to streamline the licensing and regulatory process to make it easier for companies to invest in the sector.

In addition to Azerbaijan has a well-established legal and regulatory framework for the exploration and production of oil, and the country continues to be an attractive destination for international oil companies looking to invest in the sector.

6-CONCLUSION AND RECOMMENDATIONS:

Which should be noted in this article is that the legal and legislative frameworks in general are the product of the economic, social and political structures in the state. This entails issuing legislations and laws that are in line with these structures as much as possible, or amending these legislative and legal frameworks to suit that. From this point of view, we find that political stability has a major role in the stability of legislations and laws, and this clearly appears in the Sudanese case, which is characterized by continuous political changes. Political and economic instability, which directly affects the issuance of laws and legislation in general and legislation and laws in the oil sector in particular, unlike the case of Azerbaijan, which did not witness a significant change in legislation and laws except sometimes to keep pace with changes and developments that are more related to regulations and agreements. world in the field of oil exploitation and industry.

Which can be concluded from this comparison between the legislative and legal frameworks for the oil industry in both Sudan and Azerbaijan is that the stability and non-continuous change in the legal and legislative frameworks helps to apply them optimally, which is reflected in the development of the oil industry and thus its response to all changes at the local and global levels. Finally, the development of the oil industry in Sudan certainly requires the creation of a legal and legislative environment that can contribute to the advancement of the oil industry and to cover the various aspects referred to in this article.

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