The Baghdad Karkh Appeals Court has dismissed a lawsuit filed by Iraq's Federal Oil Ministry seeking to nullify oil contracts established by the Kurdistan Regional Government (KRG), marking an important legal victory for the Kurdistan Region's energy sector.
Sabah Subhi, a member of the Iraqi Parliament's Oil and Gas Committee, told Kurdistan24 that the court not only dismissed the ministry's petition but also overturned several 2022 ministerial decisions that had previously stated KRG's oil contracts void.
The lawsuit aimed at nine prominent oil companies operating in the Kurdistan Region: Addax, Dana Gas, DNO, Gazprom Neft, Genel Energy, Gulf Keystone, HKN Energy, Shamaran, and Western Zagros.
As said by Subhi, the Federal Oil Ministry has a 30-day window to appeal the court's decision. Should the ministry decide not to challenge the ruling within this period, the case will be permanently closed.
The parliamentary committee member highlighted the broader ramifications of this ruling, observing that it serves as a strong encouragement for existing operators in the Kurdistan Region's oil and gas sector to increase their investments and operations.
Moreover, the decision is likely to improve the Kurdistan Region's attractiveness to new international energy companies considering market entry and investment.
This legal development signifies a vital turning point in the ongoing dialogue between Baghdad and Erbil concerning the management of Kurdistan Region's hydrocarbon resources, potentially paving the way for improved stability in the region's energy sector.
