The autonomous Kurdistan Region in northern Iraq is focused on increasing ties with the US. This is because it believes personal diplomacy in Washington matters now more than ever with the new Trump administration.
Toward that end, Kurdistan Regional Government (KRG) Prime Minister Masrour Barzani visited the US. A key aspect of his trip is signing deals that will help the region’s gas sector.
“Kurdish officials on Thursday welcomed the United States publicly supporting the development of the Kurdistan Region’s gas sector after major energy agreements were signed between Washington and Erbil worth a combined $110 billion,” Kurdistan Region-based Rudaw Media Network reported. The two agreements were signed in Washington.
“Aziz Ahmad, deputy chief of staff to Prime Minister Barzani, and Kurdistan Regional Government Cabinet Secretary Amanj Raheem met with US State Department officials on the sidelines of Barzani’s visit to urge Washington’s support for the KRG’s reforms,” Rudaw reported.
“‘On oil and gas, we welcomed US public support for the recent energy deals, which will help lift all of Iraq, including the Kurdistan Region,’ Ahmad wrote on X/Twitter. ‘The two deals, signed between the KRG and US-based companies HKN Energy and WesternZagros, grant the American firms the rights to develop two oil and gas fields – the Miran Gas Field and the Topkhana-Kurdamir block – in the Kurdistan Region,’” the report said.
HKN Energy is a privately held, independent energy company with oil exploration and production operations in the Kurdistan Region. WesternZagros is also a privately owned US exploration and production company, UK-based Iraq Business News reported.
Will US-Iraq ties affect the deal with Kurdistan?
According to Iraq’s Shafaq news site, the Miran Field is located west of the city of Sulaymaniyah, near the Iranian border, and was discovered by Genel Energy. Its “recoverable gas is estimated at 11.2 trillion cubic feet, while total gas in the reservoir is estimated at 22 trillion cubic feet.”
The Topkhana–Kurdamir (Qardagh) field “is located northeast of Sulaymaniyah, near the Khurmala and Chemchemal fields,” Shafaq reported. “It was operated by Genel Energy before investment was halted for legal and political reasons. The recoverable gas is estimated to be between four and six trillion cubic feet, although final tests to determine the exact volume have not been completed.”
A LOT is happening in Iraq and the US that may aid US-Kurdistan Region ties. In a House Foreign Affairs Committee hearing on Tuesday, US Secretary of State Marco Rubio said: “We first have made clear that the linchpin of our approach toward Iraq is the autonomy that the Kurdish population has in that part of the country… Part of that is allowing them the economic lifeline that enables them to prosper and succeed.”
Rubio made an important point. The Kurdistan Region is positioned between Iran and Turkey, two powerful countries and two historic empires. It is also in Iraq, which is an important country and borders Syria, where major transformations are happening.
This week in the Kurdistan Region, the Kurdistan Democratic Party (KDP) and Patriotic Union of Kurdistan (PUK) met to discuss forming the next government in the KRG. These are the two major parties in the government, and they don’t get along very well.
Deputy Prime Minister Qubad Talabani was in the Kurdistan Region’s capital, Erbil, for the talks, while the key Kurdistan Region officials, Masrour Barzani and Nechirvan Barzani, were abroad, the latter returning on Wednesday.Senior KDP member Hoshyar Zebari met with Talabani. The KDP has 39 of the 100 seats in the current regional legislature, while the PUK has 23 seats.
At the same time as the parliamentary parties discuss the road ahead, the region is also continuing to focus on security ties with the US-led, anti-ISIS coalition. Nechirvan Barzani met Kevin Leahy, commander of the coalition, on Wednesday.
“The latest developments in the security situation in Iraq and Syria, and the threats posed by the terrorist organization ISIS to security and stability, were discussed,” the Kurdistan Region Presidency reported. “Both sides emphasized the importance of continued joint cooperation between the Kurdistan Region and the global coalition, along with cooperation with the Iraqi Federal Government in confronting terrorism and strengthening the capabilities of security forces.”
In Baghdad, members of the pro-Iranian Shi’ite Coordination Framework group of parties met to discuss their own divisions as well as ties with the Kurdistan Region.
“The Coordination Framework held its regular meeting last Monday in the absence of Haider al-Abadi and Qais Khazali, with its secretary-general, Abbas al-Ameri, submitting his resignation,” Shafaq reported.
This shows how the Shi’ite parties in Iraq are divided these days. They oppose the KRG becoming too strong, and they generally work closely with Iran on their strategy for Iraq.
THE GAS deals in Washington are controversial in Baghdad.
“The Miran and Tophane-Kurdimir natural gas fields in Sulaymaniyah Governorate, within the Kurdistan Region, are a key focus of Iraq’s energy portfolio, amid ongoing political and legal tensions between the federal government in Baghdad and the regional government,” Shafaq reported.
The deals the KRG signed will boost natural-gas production. In the past, pro-Iranian groups have attacked gas fields, such as Dana gas, using drones.
“The regional government asserts that these contracts represent a strategic opportunity to enhance energy security and improve infrastructure, despite strong opposition from the federal government,” Shafaq reported. “The regional government says the two agreements were concluded with the American oil companies HKN Energy and Western Zagros, both leading companies specializing in this vital sector.”
Baghdad believes it has the right to decide the future of the gas sector. The KRG, however, says these contracts have been adjudicated.
The Miran field is considered one of the richest gas fields in Iraq, with an estimated 500 million cubic feet per day that can be produced, Shafaq reported. The Topkhaneh-Kurdamir field also has major potential, it said.
“The dispute over the management of the Miran and Tophane fields represents an extension of existing tensions between Baghdad and Erbil over natural resource management powers,” the report said. “The regional government asserts its right to sign contracts directly with foreign companies, while the federal government considers this a violation of the constitution and a breach of federal laws.
“These disputes are likely to continue to impact the energy sector, given the urgent need to maximize the use of local resources to achieve energy security and improve services for citizens.”
This could lead to investment delays, as Baghdad sees these fields as a strategic asset.
“The recoverable gas in the two fields ranges between 15 [trillion] and 17 trillion cubic feet, while the total reserve (including nonrecoverable gas) is estimated at approximately 28 trillion cubic feet,” Shafaq reported. “These figures represent clear evidence of the enormous economic potential that these fields could provide if they are exploited within a legal and political framework agreed upon between Erbil and Baghdad.”
The decision by the KRG’s prime minister to highlight these deals in Washington in person is designed to appeal to the Trump administration and get American buy-in.