The United States has reaffirmed its support for American energy companies operating in Iraq’s autonomous Kurdistan region, despite an ongoing lawsuit filed by the Iraqi federal government seeking to invalidate these deals.
According to a statement from a U.S. State Department official, Washington considers the contracts between Kurdish authorities and American firms to be valid and in alignment with the broader goal of supporting energy diversification in the Middle East. The official emphasized that energy investment in northern Iraq helps ensure regional stability and economic development.
The lawsuit, initiated by Baghdad in early 2024, alleges that all oil and gas contracts signed independently by the Kurdistan Regional Government (KRG) violate Iraq’s federal constitution. The Iraqi Supreme Court previously ruled against such deals, stating that natural resource policy should be centralized. However, Kurdish leaders, including Prime Minister Masrour Barzani, argue that their agreements are lawful and crucial for the region’s autonomy.
Barzani has urged the international community to respect Kurdistan’s rights within Iraq’s federal system, stating that attempts to undermine Kurdish contracts jeopardize not only regional prosperity but also foreign investment.
Legal experts say that the U.S. stance could complicate Baghdad’s efforts to pressure foreign companies to halt operations in Kurdistan. Some firms, including major American producers, have faced increasing legal uncertainty but have continued their operations pending further diplomatic resolutions.
This development comes as Iraq prepares for a new round of national energy reform discussions aimed at restructuring revenue-sharing frameworks between Baghdad and Erbil. Analysts note that Washington’s position signals a broader strategic interest in ensuring diversified energy supplies amid global market volatility.
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