Iraq oil ministry says US firms’ direct deals with Kurdistan violate constitution

DUBAI - Iraq’s Oil Ministry reaffirmed on Friday its commitment to working with US energy companies but emphasized that cooperation must occur through the federal government and not directly with the Kurdistan Regional Government, which would violate the Iraqi constitution.

Iraq's federal government has reservations about energy agreements signed by the Kurdistan region, after Iraqi Kurdish Prime Minister Masrour Barzani oversaw the signing of two deals worth a combined $110 billion over their lifetimes with US companies.

"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 and its official channels, as this would constitute a violation of the Iraqi Constitution and the applicable law", a statement from the oil ministry said on Friday.

"The oil ministry’s statement is a clear message directed at US companies, alerting them to respect Iraq’s valid laws,” an oil ministry official said on Friday.

The ministry added that it welcomes and seeks to work with US companies to develop oil and gas fields.