This is the final project for the Business Law Module (BUS-2019-2020-S2-BUS200),

which carries 15 marks towards your final grading. 

 A.   Material Facts of the Question:

Exxon Mobil (American Corporation) with Luke Oil (Russian Corporation) and Chinese
National Petroleum Corporation (CNPC) recently agreed together and established a joint
venture with a profit share, tasks, rights and equities, and obligations to be distributed by
them respectively 34%, 33% and 33%. They established a tripartite (joint venture) oil
company in KRG, and named it: Blessed Kurdistan (Ex.L&CN Co). 

The newly established Blessed Kurdistan (BK) oil company has recently secured an
agreement with the KRG Ministry of Natural Resources for the following (simplified) terms, in
relation to a ready/developed oil well:

1.       Contracting parties:  Blessed Kurdistan (Ex.L&CN Co) v. KRG

2.       Nature of the Contract: Oil Production and Service Contract.

3.       Term: from 1 March 2020 until 28 Feb 2040 (20 years)

4.       Location: Kasnazan, Near/Part of greater Erbil Zone, which is the capital city of

KRG, and one of the most crowded cities in KRG.

5.       Aims:

a.        Extract 100.000-barrel crude oil per day, with any accompanied natural gas.

b.       To satisfy the internal demand first, and then to export all the petroleum products.

6.       The contract is signed with the KRG and is due to come into force on 1 March 2020.

7.       All the licenses and permissions are granted by the KRG and then the F.R. of Iraq (so,
you do not need to talk about this matter in your project)

 In order to perform contract from the stipulated date, the Blessed Kurdistan (Ex.L & CN
Co) will need the followings:

1.       1000 General Labour

2.       50 Specialised Oil and Gas Engineers

3.       20 Specialised Medics with First Aid training.

4.       50 tankers/and their drivers.

5.       20 Loader Trucks, 5 Diggers and 20 Heavy Duty Tippers?/and their drivers.

6.       10 Skilled Mid-level managers, and 20 Team-leaders. (Admins)

7.       200 Security guards and their necessary equipment.

    Over all number of personnel required = 1345 persons needed

Three times meals supply for the all the above workers daily, seven days a week.

Your company has an excellent reputation in the region, and thus the Blessed Kurdistan
(Ex. L & CN Co) is keen to sign a contract with you to supply the necessary
services required. The necessary services is what your group or company can provide (as
mentioned in your company’s description below).

B.    Your company’s description:

You are the director of Erbil Logistics Ltd (ELL), which is a company registered in Erbil
under the Iraqi Company Law. (The Companies Law No. 21 of 1997 (amended by CPA No.
64 in 2004) (Companies Law)). ELL provides loaders, diggers and trucks, and tankers (i.e.
all types of long vehicles).  

C. The Question to answer is:

Explain in details what are the most important FACTORS you will need to bear in
mind, and what can your company OFFER before signing a contract with Blessed
Kurdistan (Ex. L & CN Co), in terms of:

1.       Recruitment of the personnel you need.

2.       Services that you can provide

D. Important Information to consider in your answer

1.       The Blessed Kurdistan (Ex.L&CN Co) operates 24/7 throughout the term.

2.       Kasnazan is a crowded area with the majority of old and children citizen. Also
Kasnazan Primary (Public) school and Kasnazan Hospital (100 Beds) are just as far as less
that 100 meters from the oil field’s boundary.

3.       There have been some reports of theft and looting cases in Kasnazan, particularly in
the residential areas surrounding the oil fields.

4.       There is no strong and tight fence around the field which opens the access to humans
trespass it and animals to enter.   

5.       The majority of the young and skilled people in Erbil are unemployed.

6.       Medicine should be kept in cool places.

7.       A number of the workers including senior managers are Americans, Russians, and
Chinese, and they do not like Kurdish traditional foods, but rather they prefer their own
traditional food.
8.      The area is not geologically safe enough for any type vehicle to drive through on
regularly bases, also there is a frequent wind comes from Kasnazan and passes through
operation area towards the households located immediately outside the fence of the
operation area, and then to the city of Erbil.

 TO ANSWER THE ABOVE QUESTION:- 

1. You must refer to chapters two, three, and six, and other materials of your choice
from the internet that corresponds the right or reasonable answer.

2. Write your answers in ballpoints with explanations. Do not write SHORT sentences.
The more detailed your answer is, the more marks you will get. 

3. All the students must contribute towards answering the question on their OWN
ONLYi.e. write your answer for your project by yourself.

4. The module answer is prepared and attached in the announcement page in order to
guide you how to answer your project question.

                                                               Good Luck and I wish you all the best..