Iraq Sues Kurdistan Over $110 Billion US Energy Deals

Iraq Sues Kurdistan Over Energy Deals

The Iraqi federal government has initiated legal action against the semi-autonomous Kurdistan Regional Government (KRG) regarding recent oil and gas agreements with US firms, valued at $110 billion. The lawsuit alleges constitutional violations.

Key Agreements Under Scrutiny

The core of the dispute involves two contracts the KRG signed with HKN Energy and WesternZagros to develop the Miran and Topkhana-Kurdamir gas fields in Sulaymaniyah province. Baghdad asserts these deals require federal approval.

Baghdad's Stance

Iraq's oil ministry argues that direct contracts between the KRG and foreign entities, without federal oversight, violate the nation's constitution. This position references a 2022 court ruling deeming the KRG's independent oil and gas law unconstitutional.

KRG's Defense

In response, the KRG maintains that the agreements are extensions of previously established contracts and fall within its constitutional rights. The KRG's ministry of natural resources asserts that these deals are not new and have been recognized as legal by Iraqi courts.

Implications for Oil Exports

This legal battle further complicates the resumption of oil exports through the Iraq-Turkey pipeline, which has been inactive since March 2023. The Trump administration had previously emphasized the importance of these exports.