ERBIL, Kurdistan Region – The Kurdistan Regional Government (KRG) and the Iraqi federal government are in “serious talks” to resolve the ongoing dispute over energy deals signed by Erbil with American oil and gas companies, a senior source at the Iraqi oil ministry told Rudaw English on Thursday, stressing that the issue “must be resolved” to establish a framework for future cooperation on this “national dossier.”
Last week, the KRG signed contracts with US-based energy companies HKN Energy and WesternZagros, valued at a combined $110 billion over their lifetimes.
The Iraqi oil ministry quickly rejected the agreements, calling them “a clear violation of Iraqi law” and insisting that all oil investment must be conducted through the federal government. The KRG defended the deals, stating they are based on pre-existing contracts.
A senior source at the Iraqi oil ministry, speaking on condition of anonymity, told Rudaw English on Thursday that Erbil and Baghdad “are currently engaging in serious talks to resolve this dispute, which will be and must be resolved,” asserting that “talks between the two sides did not see disruption, at any point, even after the immediate signing of the contracts.”
He further explained that “prior to the deals, the two sides [KRG and federal government] had already been engaging in discussions to address outstanding issues and had reached a very advanced stage in their resolution. However, the signing of the contracts came as a surprise to Baghdad, which views them as unconstitutional, regardless of whether they were existing contracts that had been expanded.”
The well-placed oil ministry source added that the ongoing feud “must be resolved by establishing a framework for future engagement on the national oil and gas dossier, which needs to be settled once and for all.”
“Oil and gas are a resource for all the people of Iraq, and neither side [Erbil nor Baghdad] can act unilaterally in this regard,” he concluded.
In addition to rejecting the deals as unconstitutional, Basim al-Ghraibawi, a member of the Iraqi parliament’s Oil and Gas Committee, confirmed to Rudaw on Wednesday that the Iraqi oil ministry had filed a lawsuit against HKN Energy and WesternZagros.
The lawsuit “against the contracts of the Kurdistan Region is registered in the commercial court, and these types of lawsuits are filed against the companies,” Ghraibawi said. He added that the federal oil ministry plans to take further legal action by filing a case with the Federal Supreme Court to halt the contracts and pursue administrative measures against the KRG.
Meanwhile, Reuters reported on Monday that Baghdad has also sued the KRG. However, a senior KRG official, speaking to Rudaw on condition of anonymity, stated that Erbil has not received any official notification of such a lawsuit.
Asked about the referenced lawsuits, the informed oil ministry source who spoke to Rudaw English on Thursday said, “Until this moment, there is nothing official yet,” hinting that the federal oil ministry may back down on legal action if a resolution with Erbil is reached.
For his part, KRG spokesperson Peshawa Hawramani on Wednesday commented on the current status quo in a statement on Facebook saying, “Our problems will be solved, justice will prevail.”
He stated that Kurdistan Region Prime Minister Masrour Barzani “neither now nor previously, has ever accepted humiliation, and nor will he do so in the future,” adding that “for 60 years, starvation and extermination have been used as the most disgusting method, but the result has been only one thing - the people of Kurdistan have become more dignified and stronger.”
“Kurdistan and its people await a bright future,” Hawramani emphasized.
PM Barzani had on Friday urged Baghdad to reconsider its stance, saying the deals serve “the benefit of all Iraq.”
Responding to a question about the matter by Rudaw’s reporter in Washington, Prime Minister Barzani stated, “I hope they [the federal government] think about the interest of the Iraqi people. The more they show softness, the more they will see that the efforts we make are to the benefit of all Iraq.”
The Kurdish premier made the remarks following a meeting with US Secretary of State Marco Rubio, who echoed the Kurdistan Region’s PM by urging “the government of Iraq to respect this economic lifeline that is necessary for prosperity and success.”
Speaking to Kurdistan Region President Nechirvan Barzani on Thursday, the US Secretary of State, Rubio once again reaffirmed Washington's support for the Kurdistan Region.
In a statement on X, Rubio said, “I had a productive discussion with Iraqi Kurdistan Region President Nechirvan Barzani.”
“Cooperation between the US and the Iraqi Kurdistan Region contributes to the stability within Iraq and the broader region,” Rubio noted, adding that bilateral economic partnerships between the two sides “benefit both the American and Iraqi peoples.”
US State Department spokesperson Tammy Bruce welcomed the conversation, quoting Rubio commending the KRG “for its partnership with US companies and its efforts to harness domestic resources for Iraq’s energy independence.”
During the call, Rubio “emphasized that US support for the IKR [Iraqi Kurdistan Region] would remain a key aspect of the US’s relationship with Iraq,” Bruce added.
