Iraq rejects KRG-US energy deals: Only federal government can authorize

Shafaq News/ On Wednesday, Iraq’s Oil Ministry dismissed the two energy agreements recently signed between the Kurdistan Regional Government (KRG) and American companies.

Oil Minister Hayan Abdul-Ghani told Shafaq News that only the federal government has the legal mandate to authorize contracts. “The management of Iraq’s oil wealth falls under Iraq’s authority,” he clarified.

The KRG earlier announced two contracts in Washington with US-based firms HKN Energy and WesternZagros, worth tens of billions of dollars, to expand oil production and infrastructure.

However, the ministry formally rejected the deals, citing Federal Supreme Court rulings that invalidate contracts signed unilaterally by the KRG after 2012 and 2019 decisions.

The KRG’s Ministry of Natural Resources defended the agreements. “These contracts are lawful and were approved through judicial processes,” the ministry said in a statement, rejecting Baghdad’s interpretation.

Tensions between Baghdad and Erbil over oil governance have long fueled disputes, particularly around control, revenue-sharing, and the legality of Regional contracts.