Tuesday, July 1, 2025
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Baghdad

U.S. Oil Deals Must Follow Federal Law

The Iraqi Ministry of Oil has reiterated that all international energy agreements must follow federal law. The ministry emphasized that direct dealings between U.S. companies and the Kurdistan Region, without federal oversight, violate the Iraqi Constitution.

In an official statement, the ministry expressed its strong interest in working with American companies. It welcomed their participation in the development of Iraq’s oil and gas fields. However, the ministry insisted that these partnerships must occur through legal channels defined by the constitution and the rulings of the Federal Supreme Court.

The ministry made clear that it has ongoing contracts with several U.S. firms. These include deals in drilling operations, oilfield services, and technical consulting. It underlined that cooperation in these areas remains active and encouraged—provided the companies follow federal law.

What the ministry opposes is any direct engagement with the Kurdistan Regional Government that bypasses Baghdad. Such actions, it said, are unconstitutional and conflict with Iraq’s existing legal framework.

The statement reflects growing concern over regional attempts to enter energy contracts independently. The ministry noted that bypassing federal institutions undermines national energy policy and creates legal complications.

To avoid confusion and conflict, the ministry called on all international companies to respect national sovereignty. It urged them to operate only through the official channels approved by the federal government.

By stressing the need to follow federal law, the ministry hopes to ensure legal clarity, fairness, and national unity in managing Iraq’s energy resources.

The ministry reaffirmed its commitment to fostering strong partnerships with U.S. firms. But it also warned that legal boundaries must not be ignored. For Iraq’s energy future to remain stable and secure, all parties must follow federal law.

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