SOMO backs decision on invalidity of Kurdistan Region's oil contracts
Iraq's State Organization for Marketing Oil (SOMO) said on Monday, April 11, that it respects the federal court's decision on the unconstitutionality of the Kurdistan Region's oil contracts with International Oil Companies (IOCs).

"SOMO's position is based on respecting the federal court's decision which it is the only official body authorized to market Iraqi oil," according to a statement on SOMO's official website.

It added that from the beginning, SOMO has expressed its position and warned the IOCs who are dealing with the Kurdistan Regional Government (KRG) without the permission of the federal government and the Oil Ministry that all contracts in the Kurdistan Region for the production and sale of oil are "unconstitutional and unlawful."

It went on to say that "the Iraqi Oil Ministry is the only body who can lawfully and in accordance to the constitution manage Iraq's oil and gas fields, including those in the Kurdistan Region."

SOMO added that the Iraqi Oil Ministry had taken all steps required to implement the Iraqi Federal Supreme Court's ruling in February that ordered the oil ministry and the Federal Supervisory Board to manage the Region's oil and gas fields.

In February, the KRG spokesman, Jotiar Adil, said that the authorities in Erbil assured the oil companies operating in the Region that the KRG remained committed to their agreements.

While Adil said the KRG was committed to its agreement with Baghdad, he said the KRG would take all legal and constitutional procedures to defend its rights and protect contracts and agreements with oil companies.

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