KRG signs two energy deals with US companies

The Kurdistan Regional Government (KRG) has fortified its strategic partnership with the US through the signing of two substantial US-KRG energy investments.

Prime Minister Masrour Barzani presided over the agreements, collectively valued at an estimated $110bn over the projects’ lifetimes, during his visit to Washington, DC.

The first agreement, with Texas-based HKN Energy, concerns the operation of the Miran Block in the Kurdistan Region, with an estimated value of $40bn.

The second, involving Crest Energy International’s Western Zagros, will operate the Topkhana-Kurdamir gas field, with a projected value of $70bn.

Commenting on the transaction, Barzani said: “Like the United States, the Kurdistan Region recognises the critical need for energy, and we are proud to deepen our relationship with US energy leaders to help Kurdistan achieve this goal.

“The Kurdistan Region has an abundant supply of natural resources, and by partnering with HKN Energy and Western Zagros to develop it, we will take a major step toward energy sustainability for Kurdistan while helping boost the US energy industry. The KRG looks forward to bringing these new projects to completion, and to continuously exploring new economic initiatives with our friends in the United States.”

These developments follow a $100m deal last month between GE Verona, a General Electric subsidiary, and Taurus Energy to upgrade the Bazyan power plant.

This facility, with a capacity of 1,250MW, provides electricity to more than one-and-a-half million homes across Iraq, indicating a rapid succession of energy deals that reinforce the US-KRG economic partnership.

In a related development, the Association of the Petroleum Industry of Kurdistan (APIKUR) called for the resumption of oil exports through the Iraq-Türkiye pipeline in September last year.

The pipeline had ceased operations due to regional disputes. APIKUR, representing eight foreign oil companies in the Kurdistan region, urged the Government of Iraq to hold immediate tripartite meetings with the KRG and international oil companies to discuss reopening the 600-mile pipeline.

The pipeline’s closure by Türkiye in March 2023 followed a ruling by the International Chamber of Commerce International Court of Arbitration, which ordered Ankara to pay approximately $1.5bn (Tl58.3bn) in damages to Iraq for unauthorised oil transportation.

“KRG signs two energy deals with US companies” was originally created and published by Offshore Technology, a GlobalData owned brand.

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.