This study analyses the alternative dispute resolution in oil contract which have been awarded within the modern global petroleum industry, and its great role in disputes resolution, the study focused on the concept of “oil contract” and on its main characteristics, and non- existence of clear settlements on that led to appear the differences and contradictory about the oil disputes settlements also. After that, the study argued the necessary alternative resolutions in Oil contract can be concluded between governments and foreign company as it can be concluded between the companies themselves The study analyzed the main two types of the Alternative Dispute Settlement, ADS, which are the direct and indirect ADR, such as negotiation, contract fairness…etc. The study came to find out that, the Kurdistan Oil and Gas Law No. (22) of (2007) has depended on two of the A Alternative Dispute Settlement, ADS, mechanisms which are the “contract fairness “ and “Negotiation” only and it is recommended to adopt the other alternative dispute resolutions such as: Reconciliation and expertise.