Oil Conflict: Federal Iraq vs. Kurdistan Region

The Iraqi federal government has initiated legal proceedings against the Kurdistan Regional Government, challenging oil and gas contracts it has signed with U.S. firms. Three informed sources confirmed this action, which has also been documented. This lawsuit hinders the reopening of the Iraq-Turkey oil pipeline, inactive since March 2023, despite pressure from U.S. President Donald Trump.

Overseen by Kurdish Prime Minister Masrour Barzani, the Kurdistan Regional Government secured two energy deals with HKN Energy and WesternZagros, worth a potential $110 billion. Despite reaching out, these firms have yet to comment on the development. The projects focus on the Miran and Topkhana-Kurdamir gas fields, located in Sulaimaniya, northern Iraq.

Officials in Baghdad argue that the Kurdistan government's unilateral dealings with foreign firms breach constitutional mandates, declaring such agreements 'null and void.' Nevertheless, the Kurdistan Regional Government maintains these accords are valid, based on existing contracts. Meanwhile, Barzani's recent discussions with U.S. Secretary of State Marco Rubio in Washington highlight the urgent need to resume oil exports through the contentious pipeline.

(With inputs from agencies.)