SULAIMANI, Kurdistan Region — The Iraqi Ministry of Oil has strongly rejected the Kurdistan Regional Government’s (KRG) recent multibillion-dollar energy agreements signed at the U.S. Chamber of Commerce, declaring the contracts “unconstitutional” and legally void for violating Federal Supreme Court rulings.
On Tuesday, the KRG announced that Prime Minister Masrour Barzani, alongside Minister of Natural Resources Kamal Mohammed, had overseen the signing of landmark energy deals worth over $100 billion with U.S.-based firms HKN Energy and WesternZagros, aimed at developing the vast Miran gas field in Sulaimani province—one of Iraq’s largest untapped gas reserves.
The Iraqi Oil Ministry swiftly condemned the deals, referencing the Federal Court of Cassation and Supreme Court decisions from 2012 and 2019 that prohibit such contracts without federal government approval. While acknowledging Iraq’s urgent need to increase gas production to meet domestic demand, the Ministry stressed that the KRG’s actions breach Iraqi law. It reiterated that oil and gas are national assets belonging to all Iraqis, and all investments must be federally authorized.
In a ruling, issued in 2022, Iraq’s federal court deemed an oil and gas law regulating the oil industry in the Kurdistan Region unconstitutional and demanded that Kurdish authorities hand over their crude oil supplies.
“Accordingly, these contracts are invalid under the Constitution and Supreme Court rulings,” the Ministry stated.
Prime Minister Barzani hailed the agreements as a milestone, saying during the signing ceremony, “These multibillion-dollar deals highlight Kurdistan’s commitment to peace and progress through economic development.” He also tweeted that the deals “mark a new chapter in Kurdistan-U.S. relations,” pledging to power millions, create jobs, and bolster the region’s economy.
For his part, Kamal Mohammed, the KRG’s Minister of Natural Resources, said they had not consulted with Iraq or the Oil Ministry but stressed the deals would also benefit Iraq. He added the agreements aim to supply the Kurdistan Region’s gas network and generate electricity.
In response to the Iraqi Ministry of Oil’s statement, the KRG’s Ministry of Natural Resources clarified that the two agreements signed Monday with US firms HKN and WesternZagros are not new; the contracts date back several years, have been upheld by Iraqi courts, and reaffirm the Kurdistan Region’s constitutional rights as a federal entity under Iraq’s permanent constitution.
The announcement comes amid a prolonged deadlock over resuming oil exports from the Kurdistan Region, halted since March 2023. Baghdad, Erbil, and international oil firms have yet to finalize an agreement, despite recent federal budget amendments aimed at facilitating exports.