The Iraqi government has rejected recent energy deals announced by Iraqi Kurdistan with US firms, calling them “null and void.” The deals, worth $110 billion over their lifespan, involve the development of gas fields in northern Iraq.
Prime Minister Masrour Barzani revealed the agreements in Washington, emphasizing the region’s commitment to developing its energy sector. “Our reforms are a significant step toward ensuring reliable electricity for all residents and contributing to electricity provision across Iraq,” Barzani said.
The deals focus on the Miran and Topkhana-Kurdamir gas fields in the Sulaimaniya area. However, Iraq’s oil ministry swiftly countered, stating that such agreements require approval from the federal government. “Natural resources belong to all Iraqis, and agreements must be made through the federal government,” the ministry declared.
Control over oil and gas has been a longstanding point of contention between Baghdad and Erbil. In 2022, Iraq’s federal court ruled that the Kurdish region’s oil and gas law was unconstitutional and demanded that Kurdish authorities hand over their oil supplies.
An oil ministry official added that the Washington deals were signed without Baghdad’s prior knowledge, exacerbating tensions. “Energy agreements without consulting the central government will complicate relations and hinder efforts to resume Kurdistan’s oil exports,” the official said, requesting anonymity.
The region’s oil exports are central to negotiations over the Iraq-Turkey pipeline, which has been suspended since March 2023 following a ruling by the International Chamber of Commerce. The pipeline, which once carried about 0.5% of global oil supply, has not resumed amid disputes over payment terms and contract details.
