Iraq Sues KRG Over $110B US Oil Deals

Iraq's federal government has filed a lawsuit against the Kurdistan Regional Government (KRG) for signing oil and gas contracts worth up to $110 billion with US firms HKN Energy and WesternZagros, without Baghdad's approval. The deals, focused on developing major gas fields in Sulaymaniyah, were announced by KRG Prime Minister Masrour Barzani during his visit to Washington. Baghdad argues the contracts violate Iraq’s constitution and cites a 2022 Federal Supreme Court ruling that declared the KRG’s independent oil and gas law unconstitutional, requiring all resource contracts to be approved by the central government. The lawsuit also accuses the US government of allowing its companies to bypass federal oversight, escalating potential diplomatic tensions. These developments have further delayed the restart of the Iraq-Turkey oil pipeline, inactive since March 2023. The dispute continues to threaten the stability of Iraq’s energy sector and the broader regional economy.