Iraqi Kurds agree with Baghdad to 'increase dialogue' on oil and gas dispute

Iraq's Kurdistan agreed with the federal agreement in Baghdad to "increase dialogue" to resolve "outstanding issues" including a dispute about their oil and natural gas rights, the prime ministers of both regions said July 23 in a joint statement.

Both sides "agreed to increase dialogue between the federal ministry of oil and the ministry of natural resources in the Kurdistan region of Iraq to address the outstanding issues," Kurdistan Prime Minister Masrour Barzani and Iraqi Prime Minister Mustafa Al-Kadhimi said in the statement, after their July 23 meeting in Baghdad. They also agreed to "continue working to reach common solutions, and achieve a state of integration in the management of the oil resources." It was Barzani's first visit to Baghdad since 2019.

There have been increased tensions between Baghdad and Erbil after Iraq's federal court ruled on Feb. 15 that the 2007 oil and gas law in the Kurdistan region was unconstitutional, and asked the Kurdistan region to hand over its oil operations to Baghdad. The Iraqi Kurds have rejected the ruling, but have sent delegations to Baghdad to solve the issue through dialogue without much result. Baghdad has kept putting legal and diplomatic pressure on oil companies working in the Kurdistan region. The meeting in Baghdad over the weekend was also sparked by a diplomatic crisis between Turkey and Iraq over a Turkish artillery attack on July 20 in Kurdistan that claimed the lives of nine tourists..

Barzani also met with Faiq Zeidan, the president of the Iraqi Supreme Judicial Council, and Mohammed Al-Halbousi, the Iraqi speaker of parliament.

"Iraq needs oil and gas and revenue-sharing laws. It was promised nearly two decades ago to solve Erbil-Baghdad disputes and bring about citizen security across the country," Barzani said in a tweet after the meeting with Halbousi.

He also tweeted after meeting Zeidan, that the Iraqi Kurds are ready for "an agreement in line with the constitution and the interests of all the Iraqi people."

Iraq has had no oil and gas law since 2005, despite attempts in 2007 and 2011 to pass a draft legislation. In response, the Iraqi Kurds passed their own oil and gas law in 2007, and started independent energy exports through a deal with Turkey in 2014, leading to disputes between Erbil and Baghdad.

Iraq filed for international arbitration against Turkey in 2014, which is expected to reach a final ruling by the end of this year.