Iraqi Federal Government Files Lawsuit Against Kurdistan Over Oil Contracts

The Iraqi federal government has initiated legal proceedings against the Kurdistan Region over its oil and gas contracts with U.S. firms. This legal dispute complicates efforts to revive the Iraq-Turkey oil pipeline, which has been inactive since March 2023, despite pressure from the U.S. administration.

In a new development, the Iraqi federal government's oil ministry has launched a lawsuit against the Kurdistan Region's government. This pertains to contracts signed with U.S. companies, according to three sources and a publicly disclosed document.

This legal action emerges as the latest obstacle in attempts to restore the Iraq-Turkey oil pipeline, which has remained inactive since March 2023. Despite extensive pressure from the U.S. administration under President Donald Trump's tenure, the pipeline continues to be at a standstill.

The lawsuit reflects ongoing tensions between the Iraqi federal government and the Kurdistan Region, further complicating the energy sector in the region. The outcome of this legal battle could have significant implications for international energy dynamics.

(With inputs from agencies.)