Iraq rejects KRG energy deals once again, reinforcing federal control over the country’s natural resources. The Iraqi Oil Ministry dismissed two recent agreements signed between the Kurdistan Regional Government (KRG) and American companies. This decision reaffirms Baghdad’s exclusive authority over oil contracts.
Oil Minister Hayan Abdul-Ghani explained that only the central government can legally manage Iraq’s oil wealth. He added that the constitution gives Baghdad full responsibility over national resources. These statements directly challenge the agreements announced by the KRG.
Recently, the KRG signed energy deals with U.S.-based HKN Energy and WesternZagros. These contracts aim to expand oil production and infrastructure in the Kurdistan Region. They also involve investments worth billions of dollars.
However, Iraq rejects KRG energy deals based on multiple Federal Supreme Court rulings. According to the court, any contracts made by the KRG without federal approval after 2012 are not valid. A separate 2019 ruling also confirmed Baghdad’s full control over oil exports and agreements.
The KRG’s Ministry of Natural Resources defended the deals. Kurdish officials claimed the contracts follow legal procedures and received proper judicial approval. They disagreed with Baghdad’s interpretation and said the court’s decisions do not apply here.
Despite this, tension over oil governance continues to cause disputes between Baghdad and Erbil. These disagreements affect national unity and block progress on a long-awaited oil and gas law. They also complicate Iraq’s economic and energy future.
Additionally, U.S. energy firms now face legal uncertainty. While regional leaders offer contracts, the federal government refuses to recognize them. This makes it hard for investors to plan long-term projects in Iraq.
Once again, Iraq rejects KRG energy deals to maintain centralized control. Baghdad urges all foreign companies to coordinate directly with the federal authorities. Iraqi leaders argue this approach ensures stability, legality, and equal distribution of revenues.
Looking forward, Baghdad plans to strengthen oil sector laws and eliminate unauthorized agreements. Officials believe clear national rules will prevent further disputes and attract stable foreign investment.