Is the oil found underground owned by the landowner or by the state?

Scholars have differed regarding the ownership of minerals. Some are of the view that their ownership is tied to the ownership of the land, unless the land was acquired through reclamation (iḥyāʾ). Others refer the matter to the ruler (sulṭān). Still others distinguish based on whether the mineral is apparent or not.

The Hanafis, Shafi'is, and Hanbalis are of the opinion that apparent minerals (such as oil, bitumen, salt, and water) cannot be owned through reclamation, nor is it permissible to grant them as iqṭāʿ (land grants) to anyone.

As for the Malikis, they hold that the matter of minerals, absolutely, whether they are mineral springs or otherwise, belongs to the Imam or his deputy. He may dispose of them for whomever he wishes among the Muslims or place them in the public treasury (bayt al-māl) for their benefit, even if found in a specific person's land. The landowner does not have exclusive rights to them, except in land acquired through peace treaties (arḍ al-ṣulḥ), where they have rights and are not to be interfered with. This latter view is the most preponderant (al-rājih).