Fresh oil tensions flare between Baghdad and Erbil as US involvement looms
The signing of two controversial oil and gas contracts between Iraq’s Kurdistan Regional Government (KRG) and U.S. energy firms has rekindled tensions with Baghdad,according to a report by webangah News Agency.
Iraq’s Oil Ministry has declared the agreements “null and void,” while the United States has explicitly endorsed them,urging rapid gas production to commence.
U.S. Energy Secretary Chris Wright stated on Thursday there are “significant opportunities” for American collaboration with Iraqi Kurdistan in oil and gas development.
KRG Prime Minister Masrour Barzani traveled to Washington to finalize two deals with U.S. companies HKN Energy and Western Zagros, collectively valued at $110 billion over their lifespan.
The agreements drew immediate condemnation from Iraq’s federal government, with the Oil Ministry labeling them “invalid.” Control over hydrocarbon resources remains a persistent flashpoint between Baghdad and Erbil.
“We see tremendous potential for U.S. partnership in this sector,” Wright said at a Washington conference, citing the contracts as evidence. “We’re eager to see these commercial relationships grow.”
State Department spokesperson Tommy Bruce told reporters: “We support these agreements and encourage both parties to cooperate for swift gas production.” He acknowledged Baghdad’s rejection of the deals coudl create complications.
A senior Iraqi Oil Ministry official told Reuters the contracts were signed without federal approval, potentially impacting efforts to resume Kurdish oil exports through national pipelines.
