The Iraqi federal government has reaffirmed that all energy agreements in the country must be approved through federal channels, warning that direct deals with the semi-autonomous Kurdistan region violate the nation’s constitution.
The statement came after the Kurdistan Regional Government (KRG) signed two major energy deals earlier this week with U.S. firms HKN Energy and WesternZagros. The agreements were formalized in Washington, D.C., and focus on developing the Topkhana energy block in the Garmian region.
“These agreements lay a robust foundation for the strategic development of the Topkhana energy block,” the KRG said. The region estimates the combined Topkhana-Kurdamir block holds around 5 trillion standard cubic feet of gas and 900 million barrels of recoverable oil.
The U.S. State Department welcomed the deals, stating that such partnerships could boost gas production in Iraq and provide mutual benefits. The agreements are reportedly valued at $110 billion.
However, Iraq’s Oil Ministry responded on Friday, emphasizing that any engagement with foreign companies must be coordinated through the federal government in Baghdad.
“The Ministry has no objection or reservation regarding engagement with these companies, provided that such engagement is not conducted directly with the Kurdistan Regional Government in isolation from the Federal Government,” the ministry said. “Such action would constitute a violation of the Iraqi Constitution.”
An oil ministry official told Middle East Online that the message is intended to remind U.S. companies to respect Iraq’s legal framework and sovereignty.
The dispute between Baghdad and Erbil over control of oil resources and exports has long been a source of political tension. While the KRG has pursued independent energy deals, Iraq’s constitution requires that all oil contracts be managed by federal authorities.
The situation highlights ongoing challenges in balancing regional autonomy with national legal structures, especially as international investment grows in Iraq’s energy sector.
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