The Iraqi Ministry of Oil stated on Friday that the federal government does not oppose agreements between U.S. energy companies—HKN Energy and WesternZagros—and the Kurdistan Regional Government (KRG), as long as such engagements are not conducted directly and exclusively with the KRG without coordination with Baghdad.

In an official statement, the Ministry emphasized, It welcomes collaboration with US companies on oil and gas development through direct contracts “in accordance with the Iraqi Constitution and the decisions of the Federal Court in this regard.”

The Ministry further noted its ongoing contractual relationships with U.S. firms across the oil sector, including well drilling, oilfield services, and consultancy.

It stressed that bypassing the federal government and its official channels would “constitute a violation of the Iraqi Constitution and the applicable laws.”

Meanwhile, KRG Acting Minister of Natural Resources Kamal Mohammed defended the agreements, stating on Thursday that the contracts are legal and in line with the Constitution. “According to Law No. 22 of 2007 of the Ministry of Natural Resources, several contracts have been signed in the energy sector with U.S. companies,” he said.

He added that the deals are intended to meet the Kurdistan Region’s energy needs. “We signed two contracts in the United States to meet the needs of the Kurdistan Region,” Mohammed noted.

Following the announcement of the agreements, the Iraqi Oil Ministry rejected the contracts, describing them as “null and void” under constitutional and federal legal rulings. In contrast, the KRG’s Ministry of Natural Resources maintained that the agreements with HKN Energy and WesternZagros are longstanding and legally recognized.