Iraq files lawsuit against Kurdistan over US gas deals, official says

BAGHDAD,— The Iraqi federal government has taken legal action against the Kurdistan Regional Government (KRG) over recent gas agreements signed with two American companies, officials told The AFP on Tuesday.

The dispute stems from deals announced earlier this month by outgoing KRG Prime Minister Masrour Barzani during a trip to Washington.

The contracts, which Barzani said are worth “tens of billions” of dollars, involve WesternZagros and HKN Energy.

Federal officials, including those from Iraq’s Oil Ministry, say the Kurdish region violated national law by bypassing the ministry, which holds exclusive authority over all hydrocarbon development under Iraqi legislation.

A government source, who spoke on condition of anonymity, confirmed that a formal lawsuit was filed at the Al-Karkh Commercial Court in Baghdad.

A Kurdish government official also acknowledged the filing, stating the case seeks to nullify both contracts.

One agreement covers the Topkhana gas block, in partnership with WesternZagros. Combined with the nearby Kurdamir field, the area is believed to hold approximately 5 trillion standard cubic feet of gas and close to 900 million barrels of crude. WesternZagros estimates the full development could yield as much as $70 billion over its lifespan.

The second deal, with HKN Energy, pertains to the Miran gas field, which holds an estimated 8 trillion cubic feet of gas. That project could generate up to $40 billion, according to company projections.

Srwa Abdulwahid, leader of the Newey Nwê parliamentary bloc in Iraqi parliament, criticized the contracts, saying the current regional cabinet is a caretaker body and lacks the authority to approve deals involving major financial commitments. She referenced a decision by Iraq’s Federal Supreme Court limiting such powers.

The Kurdistan region has long exported oil independently through Turkey’s Ceyhan port, but those shipments halted in March 2023 after an international tribunal ruled that such exports violated Iraqi sovereignty.

(With files from AFP | Agencies)