The Kurdistan Regional Government (KRG) has strongly criticized the joint operators of the Khor Mor gas field, Crescent Petroleum and Dana Gas, for beginning natural gas supplies to Iraq's Ministry of Electricity without prior authorization from the regional government.

According to the KRG, it was informed on 4 August 2026—at the same time as the companies' public announcement—that gas had started flowing from the Kurdistan Region to federal power stations. The government stated that the decision was made unilaterally and without its approval, despite the KRG serving as the contracting authority for the Khor Mor project.

The KRG reaffirmed its long-standing commitment to strengthening energy security for both the Kurdistan Region and Iraq, emphasizing that it has invested heavily in energy infrastructure and has consistently supported the supply of gas and electricity across the country. However, it stressed that any such arrangements must comply with existing contractual obligations and receive official approval from the regional government.

In its statement, the KRG described the operators' decision as a breach of contractual commitments and an inappropriate interference in the institutional relationship between the Kurdistan Regional Government and the Federal Government of Iraq. Officials noted that the move comes despite recent progress in cooperation between Erbil and Baghdad on energy-related issues.

The government also expressed disappointment that the operators supplied gas elsewhere after the KRG had repeatedly requested additional gas for facilities in which it had invested substantial public resources. Those facilities, the statement said, were developed to improve electricity generation for both the Kurdistan Region and the rest of Iraq.

Additionally, the KRG rejected the companies' public statement thanking the regional government for supporting the gas supplies, calling the claim "inaccurate and misleading." It insisted that it neither approved nor authorized the action.

The KRG announced that it is reviewing the legal, contractual, and operational consequences of the operators' actions and will take appropriate measures to protect its contractual rights, preserve the integrity of the Khor Mor project agreements, and safeguard the energy interests of the people of both the Kurdistan Region and Iraq.

Despite the dispute, the KRG reiterated its commitment to working constructively with the Federal Government of Iraq to expand gas production and electricity generation through mutually agreed, contractually compliant arrangements that serve the interests of all Iraqis.