The Kurdistan Regional Government (“KRG”) was informed on 4 August 2026 by Crescent Petroleum and Dana Gas, the joint operators of the Khor Mor field, that they had commenced supplying natural gas from the Kurdistan Region to Iraq’s Ministry of Electricity for power generation. The KRG received this notification only at the same time as the companies’ public announcement.
As a constitutional and integral part of the Federal Republic of Iraq, the Kurdistan Regional Government (“KRG”) has always been committed to strengthening the energy security of both the Kurdistan Region and Iraq. It has pursued this objective through significant investment in energy infrastructure and by making that infrastructure available to serve the interests of all Iraqis. The KRG has never opposed the supply of gas or electricity to any part of Iraq, provided that such arrangements are undertaken in full compliance with the governing contractual framework and with the approval of the KRG as the contracting authority.
The KRG and the Federal Government have made significant progress in strengthening cooperation in the energy sector. Against this positive backdrop, the operators’ 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 represents an unwarranted interference in the institutional arrangements governing the relationship between the KRG and the Federal Government.
The operators’ actions are particularly disappointing because the KRG has repeatedly requested additional gas supplies for facilities that had more demand for gas supplies and in which KRG has invested substantial public resources. Those facilities were developed not only to strengthen electricity supply within the Kurdistan Region but also to expand electricity generation for the benefit of the people of the Kurdistan Region and Iraq. Instead of working with the KRG to achieve these shared objectives, the operators chose to proceed unilaterally.
The KRG also rejects the operators’ public statement thanking the Kurdistan Regional Government for supporting these gas supplies. The KRG neither approved nor authorised this action, and any suggestion that it endorsed or supported the operators’ unilateral decision is inaccurate and misleading.
The KRG is reviewing the legal, contractual and operational consequences of the operators’ actions and will take all appropriate measures to protect its contractual rights, uphold 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 remains committed to working constructively with the Federal Government of Iraq to increase gas production and electricity generation through arrangements that are mutually agreed, contractually compliant and in the interests of people.
