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Iraq’s Kurdistan Works to Establish Two Oil Firms as Erbil-Baghdad Tensions Rise

A picture shows a view of the area around the citadel of Erbil, the capital of the autonomous Kurdish region of northern Iraq, as dust engulfs the sector on May 24, 2022. (AFP)
A picture shows a view of the area around the citadel of Erbil, the capital of the autonomous Kurdish region of northern Iraq, as dust engulfs the sector on May 24, 2022. (AFP)
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Iraq’s Kurdistan Works to Establish Two Oil Firms as Erbil-Baghdad Tensions Rise

A picture shows a view of the area around the citadel of Erbil, the capital of the autonomous Kurdish region of northern Iraq, as dust engulfs the sector on May 24, 2022. (AFP)
A picture shows a view of the area around the citadel of Erbil, the capital of the autonomous Kurdish region of northern Iraq, as dust engulfs the sector on May 24, 2022. (AFP)

Iraq's Kurdistan Regional Government (KRG) is working to establish two oil firms, the latest move in the battle between Erbil and Baghdad to control the oil sector in the semi-autonomous region.

The KRG's new oil firm KROC would specialize in oil exploration, while the second - KOMO - would focus on oil exports and marketing from the semi-autonomous region, a spokesperson said in a statement on Friday.

The regional government has presented the idea and discussed it with the federal government in Baghdad recently, the KRG spokesperson said in a statement.

The statement follows months of disputes between Erbil and Baghdad after a February federal court ruling that deemed the legal foundations of the Kurdistan region's oil and gas sector unconstitutional.

The oil ministry in Baghdad has since made fresh attempts to control revenue from the Kurdistan region, including summoning seven firms operating there to a commercial court on May 19. The firms were Addax, DNO, Genel, Gulf Keystone, HKN, Shamaran and WesternZagros.

The commercial court sitting has been postponed twice as some of the representation for these international oil firms did not have power of attorney, several sources told Reuters. The court session is due to resume on Monday, June 20.

As well as announcing plans to establish its own oil company in the Kurdistan region, the Iraqi oil ministry has ordered international lead contractors and subcontractors through Basrah Oil (BOC) and Iraq's national oil firm (Inoc) to pledge not to work on contracts or projects there.

Through letters sent on June 7 and 12, the firms were given three months to terminate existing contracts or projects in the KRG oil sector or face being blacklisted, according to two sources familiar with the matter.

The oil ministry is using two law firms - Vincent and Elkins and Cleary Gottlieb Steen and Hamilton - to help with gaining control of the KRG oil sector, according to two sources. Both firms have declined to comment.

The KRG has repeatedly rejected the federal court ruling. On June 5, the KRG's ministry of natural resources filed a civil suit against the minister of oil in Baghdad, Ihsan Ismael, for sending emails and letters to intimidate oil firms operating in the Kurdistan region and for interfering with the contractual rights of these firms and the KRG, according to a June 13 statement.

Also on June 5, the Erbil court of investigation ruled that the commercial court sessions against international oil firms must be brought to the Erbil court.

There have been years of attempts by the federal government to bring KRG revenues under its control, including local court rulings and threats of international arbitration.

The implications of the latest dispute are not fully clear as more than eight months since elections in Iraq, the formation of a government is still underway.

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Arab World

Syria Closes ISIS-linked al-Hol Camp after Emptying it

18 February 2026, Syria, Al-Hol: A view of al-Hol camp. Photo: Moawia Atrash/dpa
18 February 2026, Syria, Al-Hol: A view of al-Hol camp. Photo: Moawia Atrash/dpa
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Syria Closes ISIS-linked al-Hol Camp after Emptying it

18 February 2026, Syria, Al-Hol: A view of al-Hol camp. Photo: Moawia Atrash/dpa
18 February 2026, Syria, Al-Hol: A view of al-Hol camp. Photo: Moawia Atrash/dpa

Syrian authorities have closed al-Hol camp, which long housed relatives of suspected ISIS militants, after emptying the formerly Kurdish-controlled facility, a camp official told AFP on Sunday.

"All Syrian and non-Syrian families were relocated," Fadi al-Qassem, the official appointed by the government to manage al-Hol's affairs told AFP.

Al-Hol, located in a desert region of Hasakeh province, had been Syria's largest camp housing relatives of suspected ISIS fighters.

Last month, the government took over the camp from its Kurdish administrators, who had long run it, as Kurdish forces ceded territory and Damascus extended its control across swathes of Syria's northeast.

Since then, thousands of family members of foreign militants have left for unknown destinations.

The facility had housed some 24,000 people, mostly Syrians but also Iraqis and more than 6,000 other foreigners of around 40 nationalities.

Qassem said security forces were searching the tents for any remaining families.

Earlier this week, authorities had started evacuating the remaining residents, taking them to a camp in Akhtarin, in the north of Aleppo province.

Some of the families were taken elsewhere, Qassem said, without specifying the location.

"The camp's residents are children and women who need support for their reintegration," he added.

A source in a humanitarian organization that was active in the camp told AFP: "We evacuated all our teams working inside the camp, dismantled all our equipment and prefabricated rooms and moved them out of the camp".

Last week, the US military said it had completed the transfer of thousands of ISIS suspects, including many Syrians but also Westerners, to Iraq, after they were held in Kurdish-run prisons in northeast Syria for years.

Arab World

Palestinian Foreign Ministry Condemns US Ambassador to Israel’s Statements

The Israeli settlement of Har Homa, seen from the West Bank city of Bethlehem, Tuesday, Dec. 17, 2024. (AP)
The Israeli settlement of Har Homa, seen from the West Bank city of Bethlehem, Tuesday, Dec. 17, 2024. (AP)
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Palestinian Foreign Ministry Condemns US Ambassador to Israel’s Statements

The Israeli settlement of Har Homa, seen from the West Bank city of Bethlehem, Tuesday, Dec. 17, 2024. (AP)
The Israeli settlement of Har Homa, seen from the West Bank city of Bethlehem, Tuesday, Dec. 17, 2024. (AP)

The Palestinian Ministry of Foreign Affairs and Expatriates condemned statements by the US ambassador to Israel, in which he claimed that Israel has the right to exercise control over the entire Middle East.

The ministry emphasized that these provocative statements constitute a blatant call for aggression against the sovereignty of states.

It added that they support the continuation of the occupation’s war of genocide and displacement, as well as the implementation of its annexation and expansionist plans against the Palestinian people, SPA reported.

The Palestinian foreign ministry pointed out that the statements contradict religious and historical facts and international law, SPA reported.

It called on the US administration to take a clear stance regarding its ambassador to Israel’s remarks, which are completely at odds with the US president’s position rejecting the annexation of the West Bank.

Arab World

Israel Carries Out More Strikes in Lebanon amid Lack of Int’l Assurances on Wider Regional Escalation

People gather near a building damaged in an Israeli strike in the village of Bednayel in eastern Lebanon, 21 February 2026. EPA/WAEL HAMZEH
People gather near a building damaged in an Israeli strike in the village of Bednayel in eastern Lebanon, 21 February 2026. EPA/WAEL HAMZEH
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Israel Carries Out More Strikes in Lebanon amid Lack of Int’l Assurances on Wider Regional Escalation

People gather near a building damaged in an Israeli strike in the village of Bednayel in eastern Lebanon, 21 February 2026. EPA/WAEL HAMZEH
People gather near a building damaged in an Israeli strike in the village of Bednayel in eastern Lebanon, 21 February 2026. EPA/WAEL HAMZEH

Lebanese officials say the country has yet to obtain firm or decisive Western guarantees that it will be spared from a larger confrontation in the region as speculation grows over a potential US strike on Iran.

Chief concerns center on whether Hezbollah would be targeted as part of any large-scale strike, or whether the group might intervene militarily alongside Tehran.

Ministerial sources said Israeli airstrikes on Hamas in the Ain al-Hilweh Palestinian refugee camp in southern Lebanon, as well as overnight raids targeting Hezbollah in the eastern Bekaa Valley fall within the pattern of ongoing military operations Lebanon, particularly targeted assassinations against figures linked to both groups.

The sources told Asharq Al-Awsat Lebanon has not received explicit Western assurances that it would not be drawn into a wider confrontation if the conflict expands.

On Hezbollah’s position, the sources noted that the group has not offered a clear position on how it would respond to potential developments.

They pointed to behind-the-scenes efforts led primarily by Parliament Speaker Nabih Berri who believes “Hezbollah will not take any step if Iran is struck.”

Although Hezbollah has previously declared it “would stand idle” in case of escalation, the sources said the party has not announced any specific military plans.

Statements made by its officials have been vague, they added, citing remarks by head of Hezbollah’s parliamentary bloc Mohammad Raad, who stressed on Friday the party’s commitment to “the security and stability of the country and the continuation of normal life.”

In Lebanon’s official response, President Joseph Aoun strongly condemned the Israeli raids carried out overnight by land and sea, which targeted the Sidon area and towns in the Bekaa.

He described the continued attacks as “blatant aggression” aimed at sabotaging Lebanon’s diplomatic efforts with brotherly and friendly nations - foremost among them the United States - to consolidate stability and halt Israeli hostilities.

Aoun said the strikes were a renewed violation of Lebanon’s sovereignty and a clear breach of international obligations, particularly United Nations Security Council Resolution 1701, which calls for a cessation of hostilities and full implementation of its provisions.

The president renewed his appeal to countries supporting regional stability to assume their responsibilities by pressing for an immediate halt to the attacks and ensuring respect for international resolutions in a way that preserves Lebanon’s sovereignty, security, and territorial integrity, and prevents further escalation.