KRG Cabinet Secretary Amanj Raheem : Our Oil Contracts Are Constitutional, Legally Valid, and Recognized by Iraqi Courts
"Unfortunately till now the federal government failed to implement the federalism system in this regard and still they are unfortunately using and implementing laws and legislations which belong to Saddam's regime.” Amanj Raheem said.
By Ahora Qadi
ERBIL (Kurdistan 24) – Speaking at a panel during the Washington Energy Conference on Thursday, Amanj Raheem, Secretary of the Kurdistan Regional Government (KRG) Council of Ministers, firmly defended the legality and constitutionality of the KRG’s oil contracts with international companies, reiterating that both Iraqi law and judicial rulings support Erbil’s authority in the energy sector.
“You all know that the Iraqi constitution created and adopted the federalism in 2005 and very clearly it's allowing the Kurdistan Region to develop its oil and gas natural resources including oil and gas,” Raheem said. “But unfortunately till now the federal government failed to implement the federalism system in this regard and still they are unfortunately using and implementing laws and legislations which belong to Saddam's regime.”
Constitutional Framework for Oil and Gas
Raheem emphasized that the Iraqi constitution does not grant exclusive authority over oil and gas to the federal government.
“If you look at the article 110 there are listed all the exclusive authorities for the federal government and you will not find anything… regarding the oil and gas,” he stated. “So it's clear that constitutionally the oil and gas is not included in the exclusive authorities for the Iraqi federal government.”
“According to this legal constitutional basis, for the first time the Kurdistan Region in 2007 enacted the oil and gas law while we were in absence of [a] federal oil and gas [law] in whole Iraq.”\
International Investment and Judicial Recognition
Raheem cited the participation of major U.S. oil companies, including ExxonMobil, Chevron, HKN Energy, and WesternZagros, as validation of the KRG’s legal standing.
“As I heard from my colleague Minister Kamal, more than $25 billion has been invested in the oil… sector in Kurdistan Region… The American international oil companies… have a really very essential role in promoting and developing the oil and gas sector.”
Raheem also addressed the legal challenges that followed the suspension of independent oil exports after the ICC arbitration case against Turkey in 2023.
“The commercial court in Baghdad recognized all the PSCs that have been signed by the Kurdistan Regional Government with the IOCs,” he said. “Even the appeal, which is the highest judicial authority in Iraq, ratified the ruling.”
Budget Negotiations and Structural Challenges
Raheem detailed the turbulent financial relations between Erbil and Baghdad, highlighting budget cuts that began in 2014.
“In February 2014, the Iraqi government cut the share transfers… It was a very huge economic shock… so the Kurdistan Region obliged to export oil independently… through the pipeline.”
“From 2014 until 2023 really there were no transfers by the Ministry of Finance in Baghdad to the Kurdistan Region. So we ran our economy and we paid salary through the oil export revenues.”
Though Erbil agreed to send its oil through SOMO under the federal budget law for 2023–2025, disagreements over production cost reimbursements and contract terms delayed implementation.
“At the beginning just $6 per barrel for the cost of production and transportation… doesn’t work for the IOCs… We worked very closely together to amend the Iraqi budget law… and the $6 has been increased to be $16.”
He added: “We agreed that we will hire a technical consultant… to evaluate… if this $16 is matched with the economic model of the contract or should be reduced.”
Revenue Sharing and Financial Reforms
On revenue transparency, Raheem noted: “We are sharing our balance sheets every month to Baghdad… and every employee in Kurdistan Region… has their own biometric registration.”
He explained that the “My Account” banking initiative prevents mismanagement: “It is… a great tool for monetary issues. The U.S. is very concerned about the currency of dollar… so this helps a lot.”
He also mentioned ongoing discussions over non-oil revenues: “In 2023, the revenue of the Kurdistan Region non-oil revenues was like $2.8 billion. Whole Iraq… was not more than $10 billion.”
A Call for Constitutional Justice
Raheem reiterated the KRG’s demand for its fair share from federal revenues: “According to the constitution, we are entitled to get our share from the Iraqi federal revenues — not from the expenses.”
He concluded: “We want to have our share which is… more than 14%, not 12.67% that has been put in the Iraqi budget law for 2023 and 2024 and 2025… Salaries are a legal right… not linked to any political [issue]. The constitution is very clearly saying that the equality should be dealt with every citizen in the whole Iraq.”
With federal budget talks for 2026–2028 approaching, Raheem called for a new constitutional framework to ensure fiscal fairness and prevent the repetition of past crises.
