Uncertainty deepens after landmark ruling against Kurdistan’s oil sector

BAGHDAD/ERBIL - Baghdad and Erbil are navigating the ramifications of a major court ruling last month that removed the legal foundations of the Kurdistan Regional Government’s (KRG) oil sector, and which could prompt major upheaval in the governance of oil production and exports in the semi-autonomous region.

Both sides have acknowledged a need for renewed dialogue, but they appear to be envisioning vastly different negotiations. Baghdad is seeking Erbil's cooperation in implementing the Federal Supreme Court's decision, while Kurdish leaders are preparing for political negotiations aiming to work around the court ruling to preserve Kurdistan's oil sector independence.