ERBIL, Kurdistan Region - Kurdistan Region Prime Minister Masrour Barzani on Tuesday said new energy contracts worth around $110 billion with American companies mark a major stride toward economic development in the Kurdistan Region, as the Region pushes to achieve round-the-clock electricity and Iraq seeks to reduce reliance on gas imports.
“These multibillion-dollar deals underscore Kurdistan’s commitment to peace and progress through economic development,” Barzani said during a speech in Washington early Tuesday (Erbil time).
The HKN Energy and ONEX Group announced in a joint statement on Sunday that they had signed a binding term sheet with the Kurdistan Regional Government (KRG) for the development of the Miran Gas Field through their newly formed joint venture, Miran Energy. Another agreement was reached with WesternZagros, granting the American company rights to develop the Topkhana-Kurdamir block in southwest Sulaimani province to produce gas.
The deals were signed at the US Chamber of Commerce in Washington.
HKN Energy has a 62 percent share of the Sarsang block in Kurdistan Region's Duhok province. WesternZagros, according to its website, is the operator of the Kurdamir block with an 80 percent working interest and holds a 40 percent non-operated interest in the Garmiyan block in the southeast of Sulaimani province.
“The combined Topkhana-Kurdamir block holds a resource potential of up to 5 trillion standard cubic feet and 900 million barrels of recoverable natural gas and crude oil respectively. This acquisition, through a phased development approach, is expected to generate an estimated $70 billion of revenue over the life of the project,” WesternZagros said in a statement on Monday.
“The development of the Topkhana block combined with the adjacent WesternZagros owned and operated Kurdamir block will play a pivotal role in securing 24/7 electricity access for millions in the Kurdistan Region and, over time, the broader Iraqi and regional market,” Toufic Chahine, Chairman of WesternZagros, was cited in the statement as saying.
On Monday, Barzani’s senior adviser Bayan Sami Abdul Rahman said in a post on X that the deals are worth a combined $110 billion over their lifetimes.
The project will be carried out in stages, with gas production initially focused on meeting domestic needs, while also supporting regional energy demands and fostering long-term economic growth. The substantial reserves at Miran will play a crucial role in enhancing the region's energy security over time, said both companies.
Research estimates that the Miran Gas Field may contain up to 8 trillion standard cubic feet (scf) of recoverable natural gas. In the initial phase, which will span 18 to 20 months, production is expected to reach between 50 to 70 million scf. Following this, production will be scaled up, Kamal Mohammed, the KRG’s acting natural resources minister, told reporters on Monday.
Mohammed said both contracts are production-sharing agreements and were signed without consultation with the federal government in Baghdad, but that they serve the interests of all Iraq.
“Increasing gas production means reducing power shortage in the [Kurdistan] Region. Why? Because we produce more than 8,000 MW but the gas we produce can only suffice the production of 4,500 MW,” the minister later told Rudaw.
“Our government has been very dedicated to developing the energy sector in Kurdistan and especially our reform programs to provide 24-hour electricity in all of Kurdistan and hopefully to have enough to send it to other parts of Iraq,” Prime Minister Barzani added during his Washington speech.
The agreement coincides with the KRG’s initiative, dubbed Runaki or “light” in Kurdish, which aims to provide round-the-clock power across the Kurdistan Region by the end of 2026. The initiative has already been rolled out in several neighborhoods in several cities and neighborhoods.
Electricity shortages are a persistent issue in the Kurdistan Region due to high demand, limited fuel supplies, and financial constraints that prevent power stations from operating at full capacity. As a result, residents often rely on private diesel generators, which are expensive and polluting.
“Our partnership goes beyond security and fighting terrorism. We believe that economic development and investment in energy can deepen our relationship and can make our bond even stronger,” Barzani noted.
When the Islamic State (ISIS) captured large areas of Iraq in 2014, Peshmerga forces played a key role in driving the group out of disputed territories, including Kirkuk. The US-led global coalition provided military support to Peshmerga and Iraqi forces to help defeat ISIS territorially in 2017. The United States has since continued to provide military assistance to the Kurdish forces.
Barzani said the Region’s partnership with the companies “is going to be the beginning of a new era of developing our region as a whole.”
The agreement comes as Iraq continues to struggle with energy shortages and relies heavily on gas imports from Iran and the Kurdistan Region. Iranian gas supplies, critical for powering Iraq’s national grid, are often disrupted during winter due to domestic shortages and infrastructure issues.
In March, the United States revoked a waiver that had allowed Iraq to purchase electricity from Iran as part of Washington’s pressure campaign against Tehran. A US State Department spokesperson told Rudaw at the time that the US hoped Baghdad would tap into the Kurdistan Region’s gas resources instead.
Baghdad has also been working to develop its own gas fields, diversify its energy sources, and reduce reliance on Iranian imports by exploring deals with Gulf states, Turkey, and Turkmenistan, while also investing in renewable energy.
Steve Lutes, vice president and deputy head of Middle East, Central Asia and Turkey at the US Chamber of Commerce, said during a speech at the Washington event that the chamber will visit the Kurdistan Region on June 23 with a business delegation.
"So we would welcome any and all companies who are here to please stay tuned.
You're going to get an invitation imminently across all sectors of the economy and industries, and we'd encourage you to join us in the Kurdistan Region in June," he added.
Lutes also said that his chamber has "long enjoyed a really collaborative relationship" with Prime Minister Barzani.
Rasmus Engell, Vice President of Operations at the HKN Energy, said during the event American businesses focus on the Kurdistan Region because of their "special relationship."
"If you look at the Kurdish region and why American business is so focused on Kurdistan and now investing in Kurdistan so heavily, it's because of the very special relationship that we have with the Kurds," he noted.
He later told Rudaw that their goal is to “bring gas to Kurdistan [and] bring power and electricity to the Kurds,” adding that this will help the Region reach its goal of 24-hour power.
Engell also said that the gas field is “very strategic for the Kurds” and will add to the prosperity of Kurdistan.
Eric Stoerr, Oil and Gas Investment Director at WesternZagros, echoed Engell’s remarks, stating that the Kurdish region will gain a lot from the projects.
Diyar Kurda contributed to this article.
