Iraq Oil Ministry Rules US-Kurdistan Direct Deals Unconstitutional

Iraq's Oil Ministry has reiterated that while it welcomes cooperation with U.S. energy companies, all agreements must be conducted through the federal government and not directly with the Kurdistan Regional Government (KRG), as such direct deals violate the Iraqi constitution. This statement follows the KRG's recent signing of two major energy agreements worth a combined $110 billion with U.S. firms, which Baghdad considers unconstitutional due to bypassing federal authority. The KRG highlighted the commercial potential of the Topkhana energy block involved in the deals, which holds significant natural gas and crude oil reserves. The U.S. State Department expressed support for these partnerships, emphasizing their potential to strengthen Iraq's gas production and benefit both countries. Nonetheless, Iraq's Oil Ministry has warned U.S. companies to respect Iraqi law by engaging only through official federal channels, reaffirming its commitment to collaborate with U.S. firms under constitutional compliance. This situation underscores the ongoing legal and political tensions between Baghdad and Erbil over control of Iraq's oil resources.