- Iraq’s federal oil minister rejected recent $110 billion energy deals signed by the Kurdistan Regional Government, insisting that only Baghdad can approve such contracts.
- The Kurdistan Regional Government defended the agreements with U.S. firms, citing longstanding contracts upheld by Iraqi courts.
Iraq’s oil minister, Hayan Abdel-Ghani, has expressed strong reservations about two major energy deals signed by the semi-autonomous Kurdistan Regional Government (KRG) with U.S. companies. He stated that only the federal government can enter into such agreements.
“These agreements and contracts should be signed by the federal government,” Abdel-Ghani told reporters on Wednesday, May 21.
On Monday, May 19, Iraqi Kurdish Prime Minister Masrour Barzani oversaw signing deals to develop the Miran and Topkhana-Kurdamir gas fields in Sulaimaniya. The contracts, worth a combined $110 billion over their lifetimes, mark a significant investment in the region’s energy sector.
Furthermore, the Iraqi federal oil ministry, led by Abdel-Ghani, declared the agreements “null and void” on Tuesday, May 20. However, the KRG Ministry of Natural Resources defended the deals, stating they were based on contracts signed “many years ago” and upheld as legal by Iraqi courts.
In addition, tensions between Baghdad and Erbil over control of oil and gas resources remain unresolved. A key point of contention is the Iraq-Turkey oil pipeline, which Turkey shut down in March 2023. The closure followed a ruling by the International Chamber of Commerce in Paris, which found that Turkey had violated a 1973 treaty by allowing Kurdish oil exports without Baghdad’s consent.
Efforts to restart exports through the pipeline, which previously accounted for about 0.5% of global oil supply, have stalled due to disagreements over payment terms and contract frameworks.