Kurdistan Continues To Defy Iraq’s Central Govt Over Oil Industry

(Oil Ministry)

On May 17 the Kurdistan Regional Government’s (KRG) judicial council ruled that the region’s oil and gas law was constitutional. This was the latest tit for tat between Kurdistan and Baghdad over a February 2022 ruling by the Supreme Court that the KRG’s energy legislation was illegal and that the industry had to come under the central government’s authority.

 

The two sides have gone back and forth but Baghdad is at a severe disadvantage. There have been talks between the two which have gone nowhere. The Oil Ministry requested that the KRG turn over its contracts for review. Baghdad has proposed that a Kurdistan National Oil Company be created to run the KRG’s oil sector. It told energy companies in the KRG they have to sign new contracts with the Oil Ministry’s state marketing organization SOMO. The KRG’s Premier Masrour Barzani however said that the court decision was illegitimate. The KRG’s Natural Resource Minister didn’t attend any of the negotiations. This is because there is no way for the central government to enforce the court’s ruling. For one Prime Minister Kazemi heads a caretaker administration. The political parties are deadlocked but a new government will eventually be formed. The Kurds therefore have no reason to take his demands as serious. Second Baghdad has no representatives in Kurdistan. It has no way to make companies comply. It has been saying that the KRG’s oil contracts were illegal for years and that has not stopped any corporation from operating there. Hence the KRG’s judicial council action was just another sign that Kurdistan will continue with its independent energy strategy.

 

SOURCES

 

Al Aalem, “The caretaker government falls with the Federal Court punch? Did the latter open a door to a solution,” 5/16/22

 

Chalak, Chenar, “Iraq National Oil Company deems KRG contracts ‘unconstitutional’ following review,” Rudaw, 5/13/22

 

eKurd, “Iraq to implement supreme court rule on Kurdistan oil operations after failed talks,” 5/8/22

- “Iraqi Kurdistan judicial council says Kurdish oil and gas law ‘constitutional,’” 5/17/22

 

Reuters, “Iraq federal court deems Kurdistan oil and gas law unconstitutional,” 2/15/22

- “Iraq makes fresh attempt to control Kurdistan oil revenue with contract switch,” 5/19/22

 

Tahir, Rawaz, Porter, Lizzie, Hussein, Mohammed and Dourian, Kate, “Baghdad outlines plan for takeover of Kurdistan oil sector,” Iraq Oil Report, 3/31/22