Who really controls Kurdistan’s gas? The Dana Gas deal, the KRG’s silence and the hidden cost of selling energy to Iraq

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By Dr. Pshtiwan Faraj | Kurdish Policy Analysis      A $2.239 billion arbitration settlement, a contract running until 2049, expanded rights for Pearl Petroleum and a new battle over gas sales to Baghdad are raising uncomfortable questions about who ultimately controls Kurdistan’s most strategic natural resource. The latest dispute over Khor Mor gas is exposing a much deeper problem in the Kurdistan Region’s energy sector: the public still does not appear to have a clear picture of who controls the region’s gas, who is authorized to sell it, and how much of its future value has already been committed to private companies. At the center of the controversy is Pearl Petroleum, the consortium led by Dana Gas and Crescent Petroleum, and a settlement agreement reached with the Kurdistan Regional Government (KRG) on August 30, 2017. Kurdistan Parliament member Kawa Sheikh Ali has now sharply criticized that agreement, asking why a government would effectively commit its natural ...

Is Washington Funding Its Own Enemies in Iraq? A Growing Policy Contradiction

 

Kurdistan Policy Analysis- Sulaimaniyah-- Militia attacks, Kurdish vulnerability, and U.S. financial leverage raise urgent questions about America’s Iraq strategy

A recent opinion piece has reignited debate over U.S. policy in Iraq, arguing that Washington may be indirectly enabling the very forces targeting its personnel and allies.

The analysis centers on a surge in drone and militia attacks, including strikes near Erbil and attempts targeting U.S. facilities and diplomatic sites. According to the argument, these incidents are no longer isolated acts of harassment but represent a coordinated escalation by Iran-aligned militias operating within Iraq’s security landscape.

Particularly alarming, the report highlights an alleged drone strike on the residence of Kurdish leader Nechirvan Barzani, described as an attempted assassination of one of the United States’ most reliable regional partners.
Such incidents, it argues, underscore a widening gap between Washington’s stated alliances and the realities on the ground.

A System Under Strain

At the core of the critique is a contradiction: while the United States continues to provide financial and institutional support to the Iraqi state, elements within that same system are accused of harboring or integrating militia groups responsible for attacks on U.S. interests.

The Popular Mobilization Forces (PMF), a state-recognized umbrella of militias, are singled out as a key concern. Critics argue that their legal status and funding streams effectively blur the line between state authority and paramilitary actors aligned with Iran.

This dynamic, the article suggests, creates a paradox in which American funds—channeled through Iraqi state mechanisms—may indirectly sustain groups hostile to U.S. personnel and regional allies.

Kurdish Region in the Crosshairs

The Kurdistan Region emerges as a central theme in the argument. Long considered one of Washington’s most dependable partners in Iraq, the Kurdish administration is portrayed as increasingly exposed to attacks from militia groups seeking to expand Iranian influence.

The piece argues that prioritizing a unified Iraqi state—despite its internal fragmentation and external pressures—has come at the expense of more reliable allies in Erbil.

For Kurdish leaders, this raises concerns about security guarantees and the durability of U.S. commitments in the region.

Policy Prescriptions and Risks

To address what it describes as a “lethal failure” in policy, the article proposes a series of assertive measures. These include leveraging Iraq’s access to oil revenues held in U.S. financial institutions and conditioning continued support on dismantling militia influence within state structures.

It also calls for a reassessment of cooperation with Iraqi security institutions that allegedly include actors hostile to U.S. forces.

However, such steps would carry significant risks. Curtailing financial flows or downgrading relations with Baghdad could destabilize Iraq’s already fragile political system and complicate U.S. strategic interests in the broader Middle East.

A Strategic Crossroads

The broader question raised is whether current U.S. policy reflects geopolitical pragmatism or strategic inconsistency.

On one hand, maintaining engagement with Baghdad is seen as essential for preserving Iraq’s sovereignty and preventing further regional fragmentation. On the other, critics argue that continued support without structural reform may embolden militia networks and weaken U.S. credibility.

As militia attacks intensify and regional tensions persist, Washington faces a difficult balancing act: sustaining state-to-state relations while addressing the embedded influence of armed groups operating within that very state.

The debate highlights a deeper dilemma—whether the United States can effectively counter adversarial forces in Iraq without fundamentally rethinking the framework of its engagement.

#Iraq #USForeignPolicy #Kurdistan #MiddleEast #Iran #Geopolitics #Security #Erbil


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