A federal oil and gas law is vital to end disputes and stabilize Baghdad–Erbil relations.
By | Dr. Nazaket Hussen
The issue of oil and gas remains one of the most complex and multifaceted disputes between Baghdad and the Kurdistan Region. Although Iraq became a unified state after its liberation, bringing together its three main components, the matter of managing natural resources has never been properly settled.
Following the restructuring of Iraq, the Kurdistan Region was recognized as a federal entity. At that time, an agreement was reached that once a national oil and gas law was enacted, the Kurdistan Region would be allowed to extract, sell, and export its resources. This recognition reflected its status as an independent federal region, giving it the right to utilize its natural wealth. Yet, political conflicts have obstructed the passage of the law across five parliamentary sessions.
The deadlock is not only due to political conflict but also to the entrenched interests of parties that benefit from the absence of legislation. While Baghdad has advanced laws in many other sectors, and while the constitution stipulates the rights of the Kurdistan Region, these rights have repeatedly been violated. After the region was initially permitted to sell and export oil based on a political agreement, Baghdad later blocked those efforts, undermining the very accord that had recognized the region’s authority to establish its own framework for managing oil and gas.
By doing so, Baghdad created a heavy economic burden for the Kurdistan Region and its citizens. Preventing the sale of oil and blocking financial obligations has left salaries unpaid and livelihoods threatened. Political maneuvering has hurt ordinary people most of all.
The only durable solution is the passage of a federal oil and gas law—one that can restore balance, clarify responsibilities, and regulate the sharing of revenues. Such a law would ensure that natural resource revenues are directed into a National Fund, reduce economic tensions, and help stabilize relations between Baghdad and Erbil. Only then can the recurring cycle of disputes, budget crises, and public hardship be eased, allowing both the Kurdistan Region and Iraq as a whole to move forward.
——————