KRG Ministry of Natural Resources’ Response to the Allegations Made by the Iraq Ministry of Oil
Once again, the Federal Ministry of Oil has released a politically charged statement that departs from objective reality and unjustly blames the Kurdistan Region for a series of ongoing failures. These failures actually stem from centralised policies that consistently undermine the principles of genuine partnership—the very foundation upon which a federal Iraq was established.
Before addressing the specific allegations, we would like to present some indisputable facts to the public:
It is you who have consistently and flagrantly - over many years - violated the Iraqi Constitution by obstructing the passage of the Federal Oil and Gas Law, which is essential to resolving Iraq’s oil-related disputes. Rather than adopting a modern legal framework consistent with federalism, you continue to rely on outdated legislation inherited from the former Ba'athist regime—particularly Law No. 101 of 1976—which is clearly incompatible with both the federal nature of the Iraqi state and its current constitution.
Worse still, you have deliberately withheld the salaries and livelihoods of the Kurdistan Region’s citizens—an egregious violation of their most basic human rights. This policy of economic coercion amounts to systematic starvation and serves only to further your unconstitutional and discriminatory agenda. It stands as one of your most blatant and reprehensible violations.
Regarding allegations of oil smuggling in the Kurdistan Region, these claims are clearly an attempt to divert attention from widespread smuggling and corruption occurring elsewhere in Iraq. It is you who smuggle oil in the South and openly engage in corruption—facts supported by both local and international reports exposing the scale of mismanagement and theft. You manipulate oil production and distribution to serve external interests, instead of prioritising Iraq and its people. These harmful policies have severely tarnished the reputation of Iraqi oil on the international stage.
The Kurdistan Region has consistently met all its obligations despite the other party’s repeated failure to uphold its constitutional duties. It is unjust to hold the Region responsible for the surplus controlled by the Organisation of the Petroleum Exporting Countries (OPEC), especially when oil belonging to others is sold under the name of Iraqi oil. The Region is constitutionally entitled to produce twice the current volume of oil; however, in the interest of national unity and public welfare, it produces less than half that amount. We have delivered over 11 million barrels of oil to you, yet you have failed to transfer a single Iraqi Dinar to the Kurdistan Region in return - flagrantly violating agreements and financial obligations.
Regarding your latest statement, we hereby clarify the following facts unequivocally:
- The suspension of oil exports was not caused by the Kurdistan Regional Government (KRG) but stemmed from a complaint lodged by the Federal Oil Ministry against the Turkish Ministry of Energy. This suspension, which began on 25 March 2023, has resulted in losses exceeding $25 billion for the federal government, the KRG, and affiliated companies.
- Within a few days—specifically on 4 April 2023—an agreement was reached with the Federal Ministry of Oil to resume exports. However, the Budget Law imposed a limit on production costs at six dollars per barrel, causing most producing companies to halt production under this limit.
- At the Federal Ministry of Oil’s request, oil from the Kurdistan Region was supplied to a refinery operating under the Ministry’s authority for over five months, totalling 11,826,218 barrels. Despite this delivery, no payment was made for the oil supplied. As a result, the producing companies halted all further deliveries to the Federal Ministry of Oil.
- At the outset of establishing the current federal government, a joint committee was formed to draft the Federal Oil and Gas Law. Several meetings were held for this purpose; however, these efforts have yet to produce any results. There has been a noticeable delay and lack of urgency on the part of the Federal Government in addressing this critical issue, which is essential to genuinely resolving the ongoing dispute between the two governments.