What After The State Ruling That The Oil And Gas Law For The Kurdistan Region Is Unconstitutional?

What After The State Ruling That The Oil And Gas Law For The Kurdistan Region Is Unconstitutional?

01/03/2022 | 4:00 PM

What After The State Ruling That The Oil And Gas Law For The Kurdistan Region Is UnconstitutionalDr. Bilal Al-Khalifa

This article is considered a supplement to the previous article, which is (Iraqi oil and the Kurdistan region… Where), and we explained the oil and gas law of the Kurdistan region to Iraq as a whole, and in particular to the oil and gas-producing provinces in the center and south.

Now let’s come after the Federal Court’s decision that the oil and gas law legislated for the Kurdistan region is unconstitutional, and what are the expected effects of this brave state ruling.

Now the ball is in the federal government’s goal, so it must take several steps, the purpose of which is 1 – to remove injustice from Iraq in general by returning what was taken from the regional government,

2 – In order to implement the state order issued by the Federal Supreme Court,

3- To impose Iraqi sovereignty over the oil fields over the whole of Iraq

4 – Restore Iraq’s prestige in foreign forums

The Iraqi government should form committees to implement the wilaya rule, and the purpose is to

1- Classifying the fields that are under the control of the regional government into two categories

A – According to the time of exploration, was the field explored before or after the issuance of the Iraqi constitution, because the constitution clearly indicated that the old fields, that is, those before the issuance of the constitution had no talk about them, their management is the responsibility of the federal government and its representative, the Iraqi Ministry of Oil in Baghdad.

B – The second classification of the fields is the most important, and it is the classification of the fields located within the region and the others that were seized by the region as the fields of Khorur and Khomala.

2 – The second responsibility of the committees is to work with foreign companies investing in the region to link them in all dealings with the federal government and its representative, the Iraqi Ministry of Oil.

3 – Finding the legal adaptation of the oil contracts concluded by the regional government without reference to the central government and for violating those contracts to the directive of the Ministry of Oil in the type of contracts, which adopted service contracts, while the region adopted another type of contracts in which public money is greatly neglected, which are partnership contracts, and an example of this is that petroleum costs With the profitability of foreign companies in service contracts, it may be 11 dollars per barrel when the price of a barrel of oil is 100 dollars (for example). We see that in partnership contracts the share of foreign companies operating in the region is 27 dollars, where we note that the difference is about 19 dollars and this figure When it is multiplied by the total oil that was exported, which is estimated at 500,000 barrels per day from the region and for the period from 14 until now, the amount of waste in public money will be around 52 billion dollars.

4 – Forming committees to find out the assets of companies operating in the region and the Iraqi staff from it.

5 – Determine the revenues and expenses of companies for the past period.

6 – Notify the region that it has removed its hand from all correspondence and dealings with regard to the oil sector.

7 – Notify the companies of directing the books issued by them to the Iraqi Federal Oil Ministry.

But if the region rejects the state rule, this means:

1 – Not recognizing the Iraqi constitution, as there is no legal article in the event of a violation of the constitution and it did not clarify what are the elements of violating the constitution, unless it is treason to the homeland or a law enacts penalties for violators of the constitution, and those penalties must be more severe than the penal code in force because the subject Concerning the sovereignty, security, unity and entity of a country.

2 – Taking deterrent measures against the region if it does not adhere to the state rule, and we have already seen the government take good measures and had an impact and deterrence for the region in the government of Dr. Al-Abadi, and for example, the legal prosecution of any company, people or countries dealing with the region in the field of oil, including Turkey .

3 – The visual representative, Uday Awad, published supporting documents showing that the oil sold by the region is going to Israel, and we stated in the previous article that the enforceable Iraqi Penal Code No. 111 of 1969 set a death penalty for dealing with Israel in its article numbered 201, therefore, a committee must be formed to investigate By order, identify and punish those accused of selling Iraqi oil (from the region) to Israel.

Dealing with oil companies operating in the region.

1 – As we said above, foreign and local companies must be notified that the only deal is with the Iraqi Oil Ministry.

2 – In the event the companies reject the order, there are several steps that the ministry must take:

A – If it has a job in the center and the south, it should be forced to withdraw from work, as the ministry did in the time of Dr. Shahristani when he asked the French company Total, which has a contract with the region and a share of the contracting in the Halfaya oil field in Maysan Governorate, so it was given the choice between To leave work in the region or withdraw from work in the Halfaya field.

B – In the event that the companies do not have a business in the center and the south, they must be legally prosecuted.

C – In the event that the matter is not done by legal means, it is necessary to go to establish control by force over the oil fields.

3- Pushing for political pressure from the governments to which the companies return.


1 – The ball is now in the goal of the federal government and the Ministry of Oil.

2 – It is possible, not even certain, that the region will act and no verdict has been issued regarding the region’s oil and gas law.

3 – One of the important steps that the government must take is to legislate the federal oil and gas law, and it must be presented for discussion to Parliament and the people, and not to compromise the rights of the oil-producing provinces in the center and south.

4 – Things tend not to take any step from the current government, and leave the matter to the next government.

5 – From the form of negotiations and the method of the current alliances, so it is likely that the next government will be consensual, and the difficulty of forming except by consensus, and this means that concessions will be made to several parties, including the Kurdish ones, and will inevitably be at the expense of the center and the south, and in matters related to oil and gas and the federal general budget.

6 – One of the most important ways also to put pressure on the region is the provisions of the federal general budget, as the region cannot stand and pay the salaries of its employees without referring to Baghdad, and this matter despite its effectiveness, was used by previous governments only the government of Dr. Al-Abadi, the current government and despite the region’s lack of commitment to the provisions The federal general budget, it pays monthly the salaries of employees, which amount to 200 billion dinars, as well as the salaries of the Peshmerga, which do not follow the order of the Commander-in-Chief of the Armed Forces.