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Gulf Today
a day ago
- Business
- Gulf Today
Baghdad sues Iraqi Kurds over US deals
The Iraqi federal government's oil ministry has sued the semi-autonomous Kurdistan Region of Iraq over oil and gas contracts it signed with US firms, three sources with direct knowledge of the matter said and a document showed. The legal challenge is the latest obstacle to the resumption of flows through the Iraq-Turkey oil pipeline that have been halted since March 2023, despite pressure by the administration of US President Donald Trump. Baghdad has said direct engagement between companies and the Kurdistan regional government, or KRG, without the federal government's inclusion violates the constitution, calling the deals null and void. The KRG has defended the agreements, saying they were based on existing contracts. A speedy resumption of exports from Iraq's Kurdistan region would help to offset any fall in Iranian oil exports, which Washington has pledged to cut to zero as part of Trump's 'maximum pressure' campaign against Tehran. Iraq, an ally to both the United States and Iran, is wary of being caught up in Trump's policy to squeeze Tehran. Masrour Barzani, the prime minister of the KRG, oversaw the signing of two energy agreements worth a combined $110 billion over their lifetimes with US companies HKN Energy and WesternZagros during his trip to Washington DC last week. He met with US Secretary of State Marco Rubio on Friday and discussed the need to resume oil exports from Kuridstan through the Iraqi Turkish pipeline, a KRG statement said. Reuters has contacted the U.S. companies, but has not yet received a response. 'The timing of the gas deals is particularly significant, considering Iran's weakening position and Washington's ongoing pressure on Baghdad to reduce reliance on Iranian gas imports,' Iraqi energy analyst and a former manager at the state-run North Oil Co. Ali al-Obeidi, said. The agreements involve the development of the Miran and Topkhana-Kurdamir gas fields in the northern Iraqi city of Sulaimaniya. The three sources spoke on condition of anonymity because they were not authorised to speak publicly about Iraq's legal action. Flows through the pipeline were halted after the Paris-based International Chamber of Commerce ruled that Turkey violated provisions of a 1973 treaty by facilitating Kurdish exports without Baghdad's consent. Reuters
Iraqi News
2 days ago
- Business
- Iraqi News
Iraq officially sues Kurdistan over illegal US gas deals
Baghdad – Iraq's federal authorities have filed a complaint against the autonomous Kurdistan region of Iraq for signing gas contracts with two US companies, two officials told AFP on Tuesday. Oil exports have been a major point of tension between Baghdad and Erbil, with a major pipeline through Turkey shut since 2023 over legal disputes and technical issues. Regional prime minister Masrour Barzani announced the signing of two major energy deals valued at 'tens of billions of US dollars' during a visit to Washington in May. Iraq's oil ministry immediately slammed the agreements, saying it constitutes a 'clear breach of Iraqi law' and that all oil and gas development must go through the federal government. An Iraqi government official, who requested anonymity to speak on the matter, told AFP that a lawsuit had been filed before Baghdad's Al-Karkh commercial court. A Kurdish official confirmed the complaint, saying it called for 'the cancellation of the contracts'. The agreement with WesternZagros involves the development of the Topkhana block, which together with the neighbouring Kurdamir block is estimated to contain up to 5 trillion standard cubic feet of natural gas and 900 million barrels of crude oil. According to a press release, this could generate an estimated $70 billion in revenue over the lifetime of the project. The deal with HKN Energy covers the Miran gas field, which may hold up to 8 trillion standard cubic feet of natural gas, with a projected long-term value of $40 billion. Oil exports were previously independently sold by the Kurdistan region, without the approval or oversight of the central administration in Baghdad, through the port of Ceyhan in Turkey. But the region's oil exports have been at a standstill since March 2023 when the arbitration tribunal of the International Chamber of Commerce in Paris ruled that oil exports by the regional government were illegal.
Time of India
2 days ago
- Business
- Time of India
Baghdad sues Iraqs autonomous Kurdistan regional government over $110 billion US energy deal
The Iraqi federal government has initiated legal proceedings against the semi-autonomous Kurdistan regional government (KRG) over recent oil and gas agreements signed with US firms, citing constitutional violations. Tired of too many ads? go ad free now The lawsuit, filed by Iraq's oil ministry, challenges two contracts the KRG signed with HKN Energy and WesternZagros to develop the Miran and Topkhana-Kurdamir gas fields in Sulaymaniyah province. These deals, announced by KRG Prime Minister Masrour Barzani during his visit to Washington DC, are valued at a combined $110 billion over their lifetimes. Baghdad asserted that such agreements must receive federal approval, referencing a 2022 ruling by Iraq's federal supreme court which deemed the KRG's independent oil and gas law unconstitutional. The oil ministry said that direct contracts between the KRG and foreign entities without federal oversight violate Iraq's constitution, and it leaves the deal null and void. In response, the KRG maintained that the agreements were extensions of previously established contracts and fell within its constitutional rights. The KRG's ministry of natural resources emphasized that these deals were not new and have been recognized as legal and legitimate by Iraqi courts. This legal dispute further complicates the resumption of oil exports through the Iraq-Turkey pipeline, which has been inactive since March 2023 following an international arbitration ruling against Turkey for unauthorized Kurdish oil exports, despite the pressure from the Trump administration. A swift restart of oil exports from Iraq's Kurdistan region could help counterbalance any decline in Iranian crude shipments, which the US aims to reduce to zero under US President Trump's 'maximum pressure' campaign against Tehran. Analysts noted that Washington's actions are intended to mitigate the global impact of restricting Iranian oil supplies.
Arab News
2 days ago
- Business
- Arab News
Iraq sues Kurdistan region over US gas contracts: official
BAGHDAD: Iraq's federal authorities have filed a complaint against the autonomous Kurdistan region for signing gas contracts with two US companies, two officials told AFP on Tuesday. Oil exports have been a major point of tension between Baghdad and Irbil, with a major pipeline through Turkiye shut since 2023 over legal disputes and technical issues. Regional prime minister Masrour Barzani announced the signing of two major energy deals valued at 'tens of billions of US dollars' during a visit to Washington in May. Iraq's oil ministry immediately slammed the agreements, saying it constitutes a 'clear breach of Iraqi law' and that all oil and gas development must go through the federal government. An Iraqi government official, who requested anonymity to speak on the matter, told AFP that a lawsuit had been filed before Baghdad's Al-Karkh commercial court. A Kurdish official confirmed the complaint, saying it called for 'the cancelation of the contracts.' The agreement with WesternZagros involves the development of the Topkhana block, which together with the neighboring Kurdamir block is estimated to contain up to 5 trillion standard cubic feet of natural gas and 900 million barrels of crude oil. According to a press release, this could generate an estimated $70 billion in revenue over the lifetime of the project. The deal with HKN Energy covers the Miran gas field, which may hold up to 8 trillion standard cubic feet of natural gas, with a projected long-term value of $40 billion. Oil exports were previously independently sold by the Kurdistan region, without the approval or oversight of the central administration in Baghdad, through the port of Ceyhan in Turkiye. But the region's oil exports have been at a standstill since March 2023 when the arbitration tribunal of the International Chamber of Commerce in Paris ruled that oil exports by the regional government were illegal.
The National
2 days ago
- Business
- The National
Iraqi Oil Ministry files lawsuit against Kurdish region over unilaterally signed energy deals
Iraq 's Oil Ministry has filed a lawsuit against the semi-autonomous Kurdish region for signing energy deals with foreign companies without its consent, an official told The National. Last week, Kurdistan's Ministry of Natural Resources unilaterally signed two energy deals with US companies to develop natural gas resources. The combined estimated value for the agreements with the HKN Energy-led joint venture and WesternZagros is 'tens of billions of US dollars', the region said in a statement. HKN Energy and partner Onex Group will develop the Miran gasfield through their newly formed joint venture, Miran Energy. Meanwhile, WesternZagros signed a deal to acquire the resource-rich Topkhana block. No more details have been announced about the terms of the two deals. The Iraqi Oil Ministry said the move was "a clear violation to the Iraqi law". "Oil wealth belongs to all Iraqi citizens and any investment decisions should be made through the federal government," it added. On Monday, an official at the ministry said a lawsuit had been filed at a Baghdad court against the Iraqi Kurdish region. The control over the development of natural resources has been one of the thorniest issues since the 2003 US-led invasion that toppled Saddam Hussein and helped the Kurds gain official semi-autonomy. The Kurds argue that the country's constitution allows them to sign deals bypassing Baghdad, while the federal authorities maintain this is illegal. That struggle has forced Baghdad at some points to withhold Kurdistan's share in the budget, plunging the region into a series of economic hardships. In early 2022, the Kurdish region's oil sector suffered a major blow when the Federal Supreme Court ruled that the regional law regulating the industry was unconstitutional. The court demanded it hand over all oil sector activities to Baghdad – including exports. A year later, an arbitration ruling forced the region's exports through Turkey to halt, cutting off a major source of revenue for Erbil, the capital of the Kurdish region, and leaving it struggling to fulfil salary payments. Since then, no progress has been made to resume oil exports or hand over the control of the energy resources to Baghdad.
