KRG Denies Federal Oil Ministry’s Allegations, Says Baghdad Is Selling 'Other People’s Oil' Under Iraq’s Name
Peregraf
In a strongly worded statement released today, the Kurdistan Regional Government’s (KRG) Ministry of Natural Resources opposed recent accusations made by Iraq’s Federal Ministry of Oil, denying them as “politically motivated claims” and accusing Baghdad of ongoing constitutional violations and economic discrimination.
A particularly sharp accusation centered on Iraq’s commitments to OPEC. The KRG stated: “Blaming the KRG for OPEC’s surplus is your fault, because you are selling other people’s oil in the name of Iraqi oil. We have delivered to you more than 11 million barrels of oil, and you have not sent a single Iraqi dinar in return to the Kurdistan Region, in clear violation of agreements and financial obligations.”
The KRG Ministry of Natural Resources described the Iraqi federal government’s allegations as “a clear attempt to deflect attention from systemic failures in Iraq’s oil sector,” while defending the Kurdistan Region’s oil policies as both lawful and transparent. The statement emphasized that the KRG had fulfilled “its commitments under existing agreements, whereas Baghdad had consistently failed to meet its legal and financial responsibilities”.
Key Points from the KRG Response
1. Oil Export Halt Not the Region’s Responsibility
The KRG attributed the suspension of oil exports from the north to a lawsuit filed by Baghdad against Turkey in March 2023. That legal action led to the closure of the pipeline transporting Kurdish oil to international markets. According to the KRG, the resulting disruption has cost Iraq over $25 billion.
2. Unpaid Oil Deliveries
The ministry revealed that over 11.8 million barrels of oil had been delivered—at Baghdad’s request—to a federally managed refinery. Despite this, the KRG said, not a single dinar was paid, prompting producing companies to cease further cooperation.
3. Failure to Enact Federal Oil and Gas Law
The KRG criticized the federal government for failing to pass a long-awaited Federal Oil and Gas Law, continuing instead to rely on outdated Ba’ath-era legislation—particularly the 1976 law—which, according to the KRG, contradicts Iraq’s federal constitutional structure.
4. Constitutional Authority and Legal Framework
The KRG defended its contracts with international companies, signed under Oil and Gas Law No. 22 of 2007. The ministry emphasized that no reputable company would have invested billions without legal assurance.
5. Production Limits and OPEC Quotas
The KRG stated that its current oil production remains below constitutionally permitted levels. It claimed Baghdad is misrepresenting production data, attributing oil smuggled from southern Iraq to the Kurdistan Region’s OPEC quota.
6. Commitment to Cooperation
According to the ministry, the KRG has shown “maximum flexibility” by agreeing to export oil through Iraq’s State Oil Marketing Organization (SOMO), allowing external oversight, and opening an escrow account for oil revenues. These measures, the KRG said, show its willingness to support a unified national energy framework.
7. Accusations of Economic Pressure and Discrimination
The KRG accused Baghdad of using salary and budget disbursements as “political blackmail,” and described the withholding of funds as part of a “systematic policy of starvation” aimed at weakening the region’s autonomy.
This latest exchange deepens the long-running rift between Erbil and Baghdad over export of natural resources, revenue sharing, and the implementation of Iraq’s federal constitution. Repeated failures to pass a federal oil and gas law have heightened mistrust and cast doubt on the long-term viability of a unified national energy policy.
As the dispute escalates, the path forward for Iraq’s oil sector—and its broader economic stability—may depend on whether both sides can reach a lasting agreement.