Tensions between Baghdad and Erbil escalated after Iraq’s federal government filed a lawsuit against the Kurdistan region. The case targets two gas contracts signed by the Kurdish government with U.S. energy firms. The federal oil ministry argued that the Iraq Kurdistan gas contracts violate national laws.
Baghdad stressed that only the federal government holds the authority to manage oil and gas resources. The federal oil ministry strongly rejected the new contracts. It demanded the cancellation of the Iraq Kurdistan gas contracts through the court system.
The dispute began after Kurdish Prime Minister Masrour Barzani revealed major deals during his U.S. visit. The two contracts reportedly involve tens of billions of dollars. They include gas field development and export agreements with WesternZagros and HKN Energy.
According to government sources, one lawsuit has already been filed with Baghdad’s Al-Karkh commercial court. A Kurdish official confirmed the legal complaint and said the government in Erbil will respond through legal channels.
WesternZagros signed a contract to develop the Topkhana block. That block, along with the nearby Kurdamir block, may hold up to five trillion cubic feet of natural gas. The site also holds an estimated 900 million barrels of crude oil. Over time, the deal could generate $70 billion in revenue.
Meanwhile, the second deal grants HKN Energy development rights to the Miran gas field. This field may contain as much as eight trillion cubic feet of gas. The contract’s long-term value could reach $40 billion, according to official estimates.
Previously, the Kurdistan Regional Government independently exported oil through Turkey. Those shipments bypassed Baghdad’s approval. In 2023, however, an international tribunal ruled that these independent exports were illegal. That decision forced the shutdown of the region’s main export pipeline through Ceyhan.
Now, Baghdad wants all future oil and gas contracts to pass through federal oversight. Officials insist that this is the only way to protect national interests and ensure equal resource distribution.
Iraq continues to push for a unified energy strategy. The government believes the Iraq Kurdistan gas contracts undermine this goal. Therefore, federal authorities are working hard to assert their legal control and restore centralized regulation.