The Iraqi Ministry of Oil announced it supports Iraq-U.S. oil cooperation, but only under federal legal frameworks. This comes after recent energy deals between the Kurdistan Regional Government (KRG) and American firms sparked political debate.
To begin with, in a statement released Friday, May 23, the ministry emphasized its openness to working with U.S. energy companies. However, it stressed that all agreements must go through the central government to remain valid under Iraqi law.
Notably, the ministry said, We welcome collaboration with U.S. companies, but agreements must follow constitutional procedures and Federal Supreme Court decisions.
Attentionally, the statement follows the signing of two major contracts between the KRG and U.S. firms HKN Energy and WesternZagros on May 19 in Washington, D.C. These deals aim to develop key gas fields in the Kurdistan Region, with a combined value exceeding $100 billion.
Despite the scale of these agreements, the federal government expressed concern over their legality. According to Baghdad, the deals bypassed official approval channels and contradicted a 2022 court ruling that limits regional authority in energy contracting.
KRG officials defended the move, saying the agreements are extensions of older contracts. They added that Iraqi courts had already acknowledged the legality of these arrangements. The KRG’s Ministry of Natural Resources said, “There’s nothing new and the deals are based on previously recognized contracts.”
Still, Baghdad insists that any direct agreement signed without federal consent remains unconstitutional. The oil ministry added that its existing partnerships with U.S. firms continue unaffected in other regions of Iraq.
Moreover, the ministry reaffirmed its commitment to Iraq U.S. oil cooperation, so long as it complies with national laws. “We support energy development,” the statement said. “But only when conducted within legal boundaries.”
The situation underlines ongoing tensions between Baghdad and Erbil over control of natural resources. Iraq’s central government aims to maintain oversight, while the KRG continues pushing for regional autonomy in energy matters.
In conclusion, as both sides pursue separate paths, long-term energy cooperation depends on mutual legal recognition. Iraq-U.S. oil cooperation could bring major benefits, but only with unified, lawful implementation.
