ERBIL, Kurdistan Region - Iraq’s oil ministry has filed a lawsuit in a Baghdad commercial court against two American energy companies that recently signed multibillion-dollar deals with the Kurdistan Regional Government (KRG) to develop its gas and oil fields, a senior Iraqi lawmaker confirmed to Rudaw on Tuesday.
The contracts, signed last week with US-based HKN Energy and WesternZagros, are valued at a combined $110 billion over their lifetimes. The Iraqi oil ministry swiftly rejected the deals, calling them “a clear violation of Iraqi law” and asserting that all oil investment procedures must go through the federal government. The KRG has defended the agreements, saying they are built on existing contracts.
“The oil ministry’s lawsuit against the contracts of the Kurdistan Region is registered in the commercial court, and these types of lawsuits are taken against the companies,” Basim al-Ghraibawi, a member of the Iraqi parliament's oil and gas committee, told Rudaw.
However, Reuters, citing three sources on Monday, reported that Baghdad has sued the Kurdistan Region over the gas deals.
Ghrawi said the commercial court specializes in cases involving commerce, investment, sales, and partnership agreements. He added that the federal oil ministry intends to take further legal steps by filing a case at the Federal Supreme Court to halt the contracts and pursue administrative measures against the KRG.
The KRG has not received any official notification regarding the lawsuit, a senior government source told Rudaw on the condition of anonymity.
Erbil has acknowledged that it did not consult with Baghdad. On Friday, KRG Prime Minister Masrour Barzani called on the federal government to reconsider its stance, saying the deals serve “the benefit of all Iraq.”
On Thursday, KRG Cabinet Secretary Amanj Rahim defended the Region’s authority, arguing that the Iraqi constitution allows the Kurdistan Region to independently develop its natural resources. He pointed to Article 110, which outlines the exclusive powers of the federal government and does not mention oil and gas. Article 115, he noted, grants powers not listed in Article 110 to the regions and governorates.
The US government has also strongly endorsed the two major deals, stating that they will benefit the whole Iraq.
Prime Minister Barzani was warmly received by US Secretary of State Marco Rubio in Washington on Friday.
“The Secretary commended the Prime Minister for finalizing deals with US companies to expand natural gas production in the IKR [Iraqi Kurdistan Region], which will help Iraq move toward energy independence,” said State Department spokesperson Tammy Bruce at the time.
Hastyar Qadir contributed to this report.
