ERBIL, Kurdistan Region of Iraq – The Kurdistan Regional Government (KRG) on Tuesday responded to an earlier objection by the Iraqi federal government to the recently-signed deals between Erbil and American energy firms, stating that the agreements are constitutionally valid and have been previously approved by Baghdad.

Iraq’s oil ministry earlier on Tuesday announced its “rejection” of the KRG natural resources ministry’s multi-billion-dollar contract with HKN Energy and WesternZagros to develop Sulaimani oil and gas fields, saying the procedures violate a 2022 Iraqi federal court ruling prohibiting Iraqi regions and provinces from regulating trade policy with other countries.

“The KRG emphasizes all its constitutional rights and powers as a federal entity within the framework of the permanent Iraqi constitution, which clearly defines the rights and characteristics of the Kurdistan Region,” read a statement from the KRG’s natural resources ministry.

The Kurdish ministry said that the agreements with HKN Energy and WesternZagros are not new agreements, and “have existed for many years and the Iraqi courts have recognized the legality and legitimacy and have no legal problems.”

Both HKN Energy and WesternZagros have been operating in the Kurdistan Region for over 15 years.

“The agreements aim to meet domestic demand by increasing natural gas production to fuel power plants in order to provide sustainable electricity services to all regions of Iraq,” the KRG statement concluded.

The signings tie in with the Kurdistan Region’s recent attempts at reforming the energy sector. Prime Minister Barzani in October 2024 announced the “Runaki Project,” the KRG's program to provide 24-hour power to residential neighborhoods, a plan that aims to eliminate the electricity issues that the Region has struggled with for decades.

The Iraqi national power grid suffers from a severe lack of gas supply. The country has for years been dependent on Iranian electricity and gas imports to meet about 30 percent of its energy needs. This safety net, however, after the US in March declined to renew a sanctions waiver allowing Iraq to import electricity from Iran.