Oil and Natural Gas: Constitutional Frameworks for the Middle East and North Africa

Countries rich in oil and gas often derive great wealth from these resources. Yet such countries are also often host to chronic economic problems, regional infighting and democratic deficits—factors which lead to high levels of corruption and lack of government accountability in the oil and gas industry.

When neither constitutional nor effective legal rules govern the extraction of oil and gas, the regulation of the industry or the system for disbursing revenues, these problems worsen. One way to reduce the risks is to craft constitutional provisions designed to enhance accountability, minimize disputes and clarify roles and responsibilities.

With an eye to the Middle East and North Africa region, this report uses comparative examples from around the globe to address possible design options for the regulation in constitutions of oil and gas resources. It examines how a constitution can contribute to increased transparency and efficiency in the oil and gas sector in the region, and how to ensure that revenues derived from the sale of natural resources are distributed fairly within a country.