Kurdistan Region Rejects 'Unilateral' Decision by Crescent Petroleum and Dana Gas

ARK News.. The Kurdistan Regional Government (KRG) has expressed its protest and rejection of what it described as the "unilateral" decision by Crescent Petroleum and Dana Gas to begin supplying natural gas from the Khor Mor field to Iraq's Ministry of Electricity, calling the move a violation of contractual obligations and an interference in the constitutional arrangements between Erbil and Baghdad.

The KRG said it was informed by the operators of the Khor Mor field on Aug. 4, 2026, that they had begun supplying natural gas from the Kurdistan Region to Iraq's Ministry of Electricity for power generation. It added that it received this notification only at the same time the companies publicly announced the decision.

The statement stressed that, as a constitutional entity within the Federal Republic of Iraq, the Kurdistan Regional Government has consistently worked to strengthen energy security in both the Kurdistan Region and Iraq through major investments in energy infrastructure and by making that infrastructure available to serve the interests of all Iraqis.

The KRG said it has never opposed supplying gas or electricity to any part of Iraq, provided such arrangements fully comply with the governing contractual framework and receive the approval of the Kurdistan Regional Government as the contracting authority.

According to the statement, cooperation between the KRG and the Iraqi federal government in the energy sector has recently made significant progress. Against this backdrop, the companies' unilateral decision to commence gas supplies without the KRG's approval and outside the contractual framework governing the Khor Mor project constitutes a breach of their contractual obligations and an unjustified interference in the institutional arrangements regulating relations between Erbil and Baghdad.

The government described the companies' actions as particularly disappointing, noting that it had repeatedly requested additional gas supplies for facilities experiencing higher demand and in which it had invested substantial public resources. Those facilities, it said, were developed not only to improve electricity supply within the Kurdistan Region but also to expand power generation for the benefit of both the Kurdistan Region and Iraq.

Instead of working with the KRG to achieve these shared objectives, the companies chose to proceed with a unilateral decision, the statement added.

The KRG also rejected the companies' official statement thanking the Kurdistan Regional Government for supporting the gas supply initiative, emphasizing that it neither approved nor authorized the measure. It said any suggestion that it endorsed or supported the companies' unilateral action is inaccurate and misleading.

The statement concluded that the KRG is currently reviewing the legal, contractual, and operational implications of the companies' actions and will take all appropriate measures to protect its contractual rights, preserve the integrity of the contractual framework governing the Khor Mor project, and safeguard the energy interests of the people of the Kurdistan Region and Iraq.

The KRG reaffirmed its commitment to working constructively with the Iraqi federal government to increase gas production and electricity generation through mutually agreed, contract-compliant arrangements that serve the interests of the Iraqi people.

Kurdistan Region, Crescent Petroleum, Dana Gas, Khor Mor, Natural Gas, Iraq Energy, Erbil, Baghdad

91