US Oil Companies Pledge to Pull Out of Iraqi Kurdistan

The ministry added in a statement that the three companies confirmed that they will not start new projects in the region and that they are in the process of “liquidating and closing existing tenders and contracts.”

A Baker Hughes spokesman said the company “has been committed to supporting Iraq’s energy needs for decades, and we look forward to continuing to do so in accordance with local laws and regulations.”

Halliburton and Schlumberger did not immediately respond to a request for comment.

The statement by the Iraqi Oil Ministry follows months of wrangling between Erbil and Baghdad after the Federal Court ruled in February that the legal foundations of the oil and gas sector in the Kurdistan region were unconstitutional.

Since then, the Oil Ministry has made further attempts to implement the ruling, including summoning seven companies operating there to commercial court sessions that have been repeatedly postponed.

Two sources told Reuters the ministry also wrote to major contractors and subcontractors early last month, giving them three months to terminate existing contracts or projects in the KRG oil sector or face blacklisting.

The Kurdistan Regional Government has repeatedly rejected the Federal Court ruling.

Leave a Comment