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US firms are helping to develop oil and gas in Iraqi Kurdistan

Chris Wright, the U.S. Energy secretary, said that there is plenty of opportunity for U.S. collaboration on oil and natural gas development in Iraqi Kurdistan. This was despite Iraqi federal government's dispute over deals signed by U.S. firms with this region earlier this week.

The Iraqi Kurdish Premier Masrour barzani signed two agreements with U.S. firms HKN Energy & WesternZagros in Washington this week. These deals are worth a total of $110 billion.

Wright said at a Washington conference: "I see a great opportunity for American collaboration there, as evidenced by these two deals. We would love to see this commercial relationship flourish and grow."

Baghdad’s oil ministry reacted quickly to the deals, calling them “null and null.” The control of oil and gas is a long-standing source of tension between Baghdad, Erbil and other Iraqi cities.

Unofficially, an Iraqi official from the oil ministry said that the signing of these agreements was done without Baghdad’s knowledge. This would have a negative impact on efforts to resume exports of Kurdistan Regional Oil.

An oil pipeline that runs through Turkey was halted in March 2023, after the Paris-based International Chamber of Commerce found Ankara had violated the 1973 agreement by facilitating Kurdish imports without Baghdad’s consent.

The negotiations to resume Kurdish crude oil exports through the Iraq-Turkey oil pipeline, which handled 0.5% of world oil supply at one time, are stalled due to payment terms and contract specifics.

Iraq's electricity generation is heavily dependent on imports of Iranian natural gas. The increase in oil and gas production by Iraqi Kurdistan could help northern Iraq to wean off its dependence on Iranian natural gas and maintain pressure on Tehran, as Washington attempts to stop it from developing nuclear weapons. Iran claims its nuclear program has peaceful purposes.

Wright said that the development of oil, gas and other resources in Iraqi Kurdistan will help northern Iraq and allies.

It's aligned very closely with President

(Donald) Trump's

He said that his agenda had unleashed the energy dominance of America and our allies in other countries.

(source: Reuters)