ERBIL, Kurdistan Region - The Kurdistan Region Prime Minister on Thursday addressed the situation in the Region and the recent ruling of Iraq’s top court against the Kurdish oil and gas industry, saying that the decision came from an “unconstitutional” court.
In mid-February, the Iraqi Federal Supreme Court ruled against the Kurdistan Region’s oil and gas law that regulates the oil sector in the Region, putting its industry in jeopardy.
According to article 111 of the Iraqi constitution, the oil and gas of Iraq is a property of the whole country, which includes the Kurdistan Region, its cities, and its provinces, PM Barzani said in a press conference.
"However, it doesn't say, in any way, that the oil and gas is a possession of the Federal Court," Barzani added.
The KRG passed its oil and gas law in 2007, enabling it to administer and develop its own oil and gas resources.
Iraq’s top court’s decision on February 15, found the law to be “unconstitutional,” and therefore struck down the legal basis for the independence of the Kurdistan Region’s oil and gas sector. The decision came amid ongoing political tension and an ongoing government formation process as the country has failed to elect a president almost five months after the elections.
The ruling also comes at an important time as oil prices increased to over $110 following Russia’s invasion of Ukraine last week, and as the Region attempts to further develop its oil industry.
The court’s ruling “came at a very sensitive timing and it could be politically motivated,” Barzani said. “It is not in the interest of Iraqi people.”
I feel it is important to make clear our position regarding the recent ruling by the so-called Federal Supreme Court. This blatant political move by an unconstitutional court is a gross violation of the Iraqi Constitution designed to cause us serious economic and political harm. pic.twitter.com/dzOcDzhhWf
— Masrour Barzani (@masrour_barzani) March 3, 2022
Two years after the 2003 US invasion of Iraq, the majority of Arabs, Kurds, and others voted for a constitution for the country. The constitution’s Article 120 stipulates that the Kurdistan Region can have its own constitution on the condition that it does not contradict
Iraq’s.
However, with the Kurdish political parties struggling to agree on a constitution, they rely on a series of laws, instructions, and norms as a substitution for the constitution, including the Oil and Gas Law.
Kurdistan’s oil and gas law complies with all the provisions of the constitution, PM Barzani said, reiterating that the “so-called” Iraqi Federal Court’s decision is “against” Iraq’s constitution as “it is a change in the constitutional articles.”
Disputes arose between Baghdad and Erbil in early 2014, when Baghdad cut the Region’s share of the federal budget, setting into motion a series of crises that the KRG still suffers from. By March 2014, the KRG started exporting its oil abroad in an attempt to secure the salaries of its employees.
The Iraqi and Kurdish governments were once again brought to the table in 2021 when Iraq was drafting its budget law. Both sides agreed that the KRG would continue its oil sales, and in return would hand the revenue of 250,000 barrels of oil to Baghdad daily.
There are 52 oil blocks in the Kurdistan Region, 16 of them are in production, and 15 are in exploration phases. Over 30 international and local companies are working in the sector. The Region produces around 450,000 barrels per day.
Barzani said that their contracts with the oil companies will remain the same, adding that the companies will be dealt with “in accordance to the contracts”.
The premier proceeded to question how a court formed “unconstitutionally” can make such a decision.
The Iraqi Federal Court “was not formed constitutionally, meaning it is an unconstitutional court itself. How can it decide on something constitutional … and change the constitution’s articles?” Barzani said while noting that the Region will not accept the violation of its constitutional rights.
Top Kurdish leaders on Monday convened to discuss the court’s ruling, dubbed “a political decision.”
The meeting “reiterated that the Iraqi Federal Court ruling is unacceptable, emphasizing that the Kurdistan Region will continue to exercise its constitutional rights, and not relinquishing its lawful rights and powers,” read a statement from the Kurdistan Region Presidency.
The court also surprised the Region, especially since the KRG’s ministry of natural resources had recently developed good relations with its federal counterpart.
“We have sensed that the federal oil ministry has been emboldened by the court ruling, signaling intent to go far beyond its stated intent to undermine Kurdistan’s federal status,” PM Barzani tweeted, quoting his speech from the presser.
The KRG exported a total of nearly 80 million barrels of crude oil in the first half of 2021, collecting a net $1.7 billion.
