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State Department reiterates U.S. support for Iraqi Kurdistan energy deals amid legal challenges in Baghdad

3540470 · May 28, 2025

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Summary

The State Department said it supports economic deals that benefit all Iraqis after reporters noted that Iraq's oil ministry had filed lawsuits challenging two recent deals in the Iraqi Kurdistan Region; the department encouraged Baghdad and Erbil to work together to expand domestic gas production.

The State Department reiterated U.S. support for economic deals involving U.S. companies in the Iraqi Kurdistan Region (IKR) while noting that the U.S. encourages Baghdad and Erbil to resolve disputes and expand domestic gas production.

Reporters cited new reporting that Iraq’s oil ministry had filed lawsuits challenging two contracts signed between the IKR government and U.S. firms. The spokesperson said the United States “supports economic deals that benefit all Iraqis” and “encourages Baghdad and Erbil to work together to expand domestic gas production as soon as possible.”

The briefing noted that U.S. oil companies have previously invested billions of dollars in the IKR’s oil sector and said the secretary of state recently met with IKR prime minister Mansoor Barzani in Washington to discuss further trade and investment opportunities. “The secretary commended the prime minister for finalizing deals with U.S. companies to expand natural gas production in the IKR,” the spokesperson said.

When asked about the effect of lawsuits on U.S. investor incentives, the spokesperson said the United States expects such deals to continue and to be facilitated, while underscoring the importance of a strong and resilient IKR within a sovereign federal Iraq. The department did not provide legal analysis of the lawsuits or offer comment on the merits of the legal filings by Baghdad at the briefing.