Iraqi top court rejects lawsuits against major US-KRG energy deals

ERBIL, Kurdistan Region - Iraq’s Federal Supreme Court on Sunday dismissed two lawsuits seeking to overturn major multibillion-dollar oil and gas contracts signed in May between the Kurdistan Regional Government (KRG) and two American companies, Western Zagros and HKN Energy.

The deals, aimed at developing the Miran and Topkhana gas fields, have drawn criticism from Baghdad. The court rejected both cases, with one being “annulled” and the other “dismissed,” meaning the contracts remain valid and enforceable, it said in a statement.

The lawsuits were filed separately by Iraqi lawmakers Raed al-Maliki and Bassem al-Gharibawi, who argued the agreements violated the Iraqi constitution and posed a threat to “public funds and property.” The court, however, found the claims legally unsubstantiated and did not rule in favor of nullifying the deals.

American firms HKN Energy and WesternZagros signed two major oil and gas deals in May worth $110 billion over their lifespans in the Kurdistan Region. The deals were signed during Prime Minister Masrour Barzani’s visit to the US.

The deals - while welcomed by Erbil and Washington - prompted a lawsuit from the federal oil ministry, which claimed the contracts violated federal court rulings and the Iraqi constitution. The KRG defended the agreements as extensions of existing contracts that benefit all of Iraq.

The complainants further demanded that the Kurdistan Region be prohibited from signing any oil and gas contracts without the consent of the federal government, according to the top court.

The deals align with the KRG’s Runaki initiative - meaning “light” in Kurdish - which aims to provide 24-hour electricity across the Region by the end of 2026. The program has already been launched in several cities and neighborhoods.