Iraq bids to control Kurdistan oil revenue with contract switch

Iraq bids to control Kurdistan oil revenue with contract switch

A letter seen by Reuters shows that the oil ministry appointed international law firm Cleary Gottlieb Steen and Hamilton to approach some oil and gas firms operating in the Kurdistan region to "initiate discussions to bring their operations into line with applicable Iraqi law."

Implementing the court decision "will require changes to the contractual regime" for the companies, the letter added. Other firms received a letter directly from the oil minister, one source said.

The KRG has repeatedly rejected the federal court ruling.

The letters, which were sent on May 8, mark the first direct contact between the ministry and oil firms operating in the Kurdistan region. The move follows years of attempts by the federal government to bring KRG revenues under its control, including local court rulings and threats of international arbitration.

The implications of the latest move are not fully clear as more than seven months since elections in Iraq, the formation of a government is still underway.

An Iraqi oil ministry legal adviser, who spoke on condition of anonymity, told Reuters that a joint government committee, including representatives from the oil ministry including the minister, Iraq’s National Oil Company (Inoc) as well as the Federal Board of Supreme Audit (FBSA), will conduct