On Tuesday, the Iraqi federal court stated in its decision that the KRG must hand over all crude from the Region and neighboring areas to the federal government.

It further said the KRG oil contracts with oil companies, foreign parties and states “invalid”, including exploration, extraction and sale agreements, Esta Media Network said in a report.

It also ruled to commit the KRG to allow the Iraqi oil ministry to “review all oil contracts entered into by KRG for the export and sale of oil and gas”.

“This decision by the Federal Supreme Court is unjust, unconstitutional, and violates the rights and constitutional authorities of the Kurdistan Region,” the KRG said in a statement.

“It is unacceptable and the Court must investigate further and consider the requests of the Kurdistan Region,” it added.

The KRG would not “forfeit the rights of the Kurdistan Region as codified in the Iraqi Constitution, and will continue its attempts to reach a constitutional solution with the federal government on this matter”.

It further said the court made the decision even though the KRG requested delay of the case so as to allow the opportunity for an agreement to be reached with Baghdad.

“The Kurdistan Regional Government will take all constitutional, legal, and judicial measures to protect and preserve all contracts made in the oil and gas sector.”

The KRG has been developing oil and gas resources independently of the federal government, and in 2007 entered its own law that established the directives by which the Region would administer these resources.

KRG crude is exported through a pipeline that runs from Iraq’s Kirkuk region to the Turkish port of Ceyhan.

Iraq’s federal government has long called for all oil exports in the country to go through it, having previously lashed out at Turkey in 2012 and 2014 for its role in refining and re-exporting oil produced in the Kurdistan Region.

Meanwhile the President of the Kurdistan Region, Nechirvan Barzani, said on Tuesday (February 15) that the decision from the Iraqi Federal Supreme Court stemmed from a law from Iraq’s former regime.

Barzani said in a statement the verdict "managed to overlook the principles of federalism and the constitutional rights of the Kurdistan Region,” and would worsen the disagreement between the Region and the federal government on oil and gas.

He also stated the ruling was "not applicable in practice or reality.”

Barzani called on the supreme court to review the verdict to prevent political tension.

Also Kurdistan Democratic Party (KDP) leader Masoud Barzani yesterday stated the supreme court’s decision was completely political, adding he hoped the KRG and the Iraqi government would be able to reach an agreement.

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