Iraq's federal court on Tuesday deemed an oil and gas law regulating the oil industry in Iraqi Kurdistan unconstitutional.
Former KRG official said in a blog he shared earlier today, "the ruling of the Federal Court to annul the law on Gas and Oil in the Kurdistan Region no. 22 of 2007 is perilous to Iraq's prospects as a federal state and a direct threat to the Kurdistan Region."
"The Federal Court has overstepped its jurisdiction by undermining the foundations of the Federal state and the constitution," he said.
Blu called the people of the Kurdistan Region to appeal to international courts to redeem their rights.
"The Kurdistan Region shall be placed under international trusteeship because it is in danger," he continued.
Tuesday's court decision stated that the KRG must hand over all crude from the Kurdistan Region and neighboring areas to the federal government, represented by the oil ministry in Baghdad.
The ruling declared KRG oil contracts with oil companies, foreign parties, and states invalid. This includes exploration, extraction, export, and sale agreements, according to the document.
The ruling also stated that the oil ministry must be allowed to audit all agreements concluded by the KRG with oil and gas companies.
The Kurdish regional government (KRG) has been developing oil and gas resources independently of the federal government, and in 2007 enacted 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 Kirkuk 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.
“Today is a dark day in the history of the Kurdistan Region … The decision will have a significant impact on the oil project, extraction and the sale of oil and gas in the Kurdistan Region,” Iraq’s former deputy minister Fazil Nabi told Esta Media Network.
“The decision has a negative impact on the extraction and sale of oil and the contracts,” he added.
He, however, said it was not “the end of the world” and that there were still ways for the KRG to take with the federal government.
Reporter's code: 50101