KRG Ministry of Natural Resources Confirms Legality of Oil Contracts with U.S. Firms HKN and WesternZagros

KRG Ministry of Natural Resources
KRG Ministry of Natural Resources

The Ministry of Natural Resources of the Kurdistan Regional Government (KRG) issued a statement on Tuesday clarifying that its oil agreements with two U.S. energy firms, HKN and WesternZagros, are longstanding and legally recognized, amid continued investment in the region’s energy sector.

In its statement, the Ministry emphasized that the contracts “are not new” and have existed for many years. It noted that Iraqi courts have reviewed and confirmed the legality of these agreements, and that they contain no legal irregularities.

"Only the contracting companies have changed, and that occurred within the framework of legal and contractual procedures outlined in the agreements," the Ministry explained.

According to the statement, both HKN and WesternZagros have been involved in oil and gas investments for many years and are among the main producers in the Kurdistan Region.

The Ministry noted that the agreements are part of a broader strategy to increase natural gas production to meet domestic energy needs, particularly for power generation across Iraq.

The Ministry further underscored the KRG’s broader position, stating that the Kurdistan Regional Government fully upholds its constitutional rights and powers as a federal entity under the framework of Iraq’s permanent constitution. The Ministry framed the agreements as being in alignment with those federal rights.

"These agreements aim to meet domestic demand by increasing natural gas production to fuel power plants, ensuring sustainable electricity services for all regions of Iraq," the Ministry said.

The statement comes amid ongoing scrutiny of energy deals and efforts to clarify the legal framework under which international oil companies operate in the Kurdistan Region.