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 ...

Baghdad and Erbil’s New Security Pact: Why Protecting Foreign Oil Companies Could Reshape Iraq’s Political Order

 


What is the reason for the sudden visit of the Iraqi army chief of staff to Erbil?

By Dr. Pshtiwan Faraj | Kurdish Policy Analysis

Estimated Reading Time: 18–20 minutes

Kurdistan Regional Government (KRG) President Nechirvan Barzani met with a high-level Iraqi military delegation led by Chief of Staff of the Iraqi Army Lieutenant Colonel Abdul Amir Rashid Yaralla in Erbil on Sunday morning.

The two sides are scheduled to discuss mechanisms to strengthen joint security and military coordination between the federal forces and the Peshmerga forces, a source in the Iraqi Defense Ministry said.

The visit comes as Yaralla had previously proposed to the Iraqi prime minister that the Iraqi army protect the oil fields in the region.

There is also continued movement on the issue of weapons of armed groups, as the withdrawal of the US-led international coalition against ISIS from Iraq approaches

Kurdistan Region - Kurdistan Region President Nechirvan Barzani and Prime Minister Masrour Barzani on Sunday received an Iraqi security delegation led by Iraq’s army chief of staff Abdul Amir Yarallah in Erbil to discuss establishing defenses for foreign oil companies operating across Iraq and the Region.

According to the Iraqi defense ministry Yarallah arrived in the Kurdistan Region to “discuss a range of common issues.”

An informed source to Rudaw on Sunday said the primary goal of the visit is "to strengthen military and security relations between Erbil and Baghdad," adding that Yarallah “expressed his readiness for any necessary steps to protect the oil fields of the Kurdistan Region."

This comes against the backdrop of foreign companies in the Kurdistan Region being targeted by pro-Iran Iraqi armed groups since the outbreak of the six-week war between the US, Israel and Iran in late February.

President Nechirvan Barzani’s office said the delegation “announced that the goal of their visit is to follow up on the security file of the oil companies in the Kurdistan Region.” The security plan, involving Kurdish Peshmerga forces and federal authorities, aims to provide guarantees needed to resume oil production and exports.

Regarding efforts to resume oil production and exports, President Barzani emphasized “the importance of these efforts, describing them as an effective step toward the country's economic revival,” while reaffirming the need for a joint plan and security cooperation between the Iraqi Army and the Peshmerga to maintain “stability and combat terrorism and its threats.”

The Iraqi delegation also met with Prime Minister Barzan. According to statement from the Kurdistan Regional Government, Barzani “expressed his and the Kurdistan Regional Government's thanks and appreciation for the Federal Prime Minister's follow-up and his assurances regarding the protection of the security and stability of the Kurdistan Region.”

The KRG stated in late April that at least 809 drones and missiles targeted the Kurdistan Region between February 28 and April 20.

A rare security alignment between Baghdad and Erbil signals more than oil protection—it may mark the emergence of a new political and military understanding after months of regional instability.

Baghdad and Erbil’s New Security Pact: Why Protecting Foreign Oil Companies Could Reshape Iraq’s Political Order

By Dr. Pshtiwan Faraj

Kurdish Policy Analysis

At first glance, the latest high-level security meeting between Baghdad and Erbil appears narrowly focused: protect foreign oil companies, restore production, and reassure investors.

But beneath the surface, the meeting reflects something potentially larger—a strategic recalibration in relations between Iraq’s federal government and the Kurdistan Region during a period of growing regional uncertainty.

On Sunday, senior Iraqi military officials arrived in Erbil carrying a message that extends beyond security coordination.

The delegation, led by Iraq’s army chief of staff, met with Kurdistan Region President Nechirvan Barzani and Prime Minister Masrour Barzani to discuss a joint security framework designed to protect foreign oil operators across Iraq and the Kurdistan Region.

Officially, the discussions focused on safeguarding energy infrastructure and creating conditions necessary for restoring oil production and exports.

Unofficially, the initiative may signal a broader transformation in Baghdad–Erbil relations.

Security Cooperation Under Regional Pressure

According to officials and informed sources, the meetings centered on establishing security guarantees for foreign energy companies operating inside the Kurdistan Region.

The timing is significant.

The talks come after months of heightened regional instability and repeated attacks targeting infrastructure and investment confidence.

Since late February, escalating regional confrontation involving the United States, Israel, and Iran has increased pressure across Iraq and the Kurdistan Region.

Foreign energy assets became increasingly exposed to indirect competition between regional actors.

In response, Baghdad appears to be pursuing a more proactive approach to security coordination.

For the Kurdistan Region, security guarantees are no longer solely about physical protection.

They have become directly tied to economic survival.

Why Oil Security Has Become Political Security

Oil has always been more than an economic issue in Iraq.

It shapes political legitimacy, fiscal stability, and relations between federal and regional authorities.

For years, disagreements over energy policy created recurring tension between Erbil and Baghdad.

Questions surrounding exports, contracts, revenue sharing, and jurisdiction repeatedly produced political crises.

What makes the current development notable is that both sides now appear to view protection of energy infrastructure as a shared strategic interest.

That shift matters.

Because once security institutions begin coordinating operationally, political cooperation often becomes easier to sustain.

This creates the possibility of gradual confidence-building between Iraqi federal institutions and Kurdish authorities.

The Strategic Role of the Peshmerga

One of the most important dimensions of the proposed security arrangement is the expected coordination between Iraqi federal forces and the Peshmerga.

Historically, security cooperation between both sides has fluctuated according to political conditions.

Periods of crisis often interrupted coordination.

However, recent threats have revived arguments that fragmented security structures create vulnerabilities that external actors can exploit.

Joint defense of energy infrastructure may therefore become an entry point toward broader security integration.

If successful, this model could later expand into intelligence coordination, counterterrorism cooperation, and disputed territory management.

Foreign Investment and Confidence Restoration

International energy companies calculate risk before investment.

Repeated attacks against energy facilities increase insurance costs, delay production schedules, and reduce long-term commitments.

This has become one of the greatest economic challenges facing both Erbil and Baghdad.

By publicly signaling joint protection mechanisms, Iraqi and Kurdish authorities are sending a message to international markets:

Energy operations remain viable.

Security guarantees remain active.

Production continuity remains a national priority.

Whether this reassurance succeeds depends less on official statements and more on implementation.

Beyond Oil: A Test of Federal Relations

This initiative should not be viewed only through an energy lens.

It is also becoming a test of Iraq’s federal model.

The question is no longer whether Baghdad and Erbil disagree.

Disagreement has become normal.

The real question is whether both sides can create durable mechanisms that survive political tensions.

Energy security may become the first practical field where cooperation proves more valuable than competition.

If joint defense efforts succeed, they could establish precedents for wider coordination.

If they fail, distrust may deepen and reinforce arguments for greater centralization or greater regional autonomy.

The Regional Dimension

Regional actors are watching carefully.

The Kurdistan Region occupies an increasingly important position in Iraq’s energy calculations.

Any disruption affects not only domestic politics but also regional supply expectations and investment perceptions.

That makes attacks against energy infrastructure more than tactical incidents—they become strategic messages.

Baghdad’s willingness to visibly support protection efforts inside the Kurdistan Region suggests recognition that instability there now carries national consequences.

Conclusion: More Than an Oil Story

The security discussions in Erbil represent more than a technical meeting.

They reveal a changing understanding inside Iraq:

Economic recovery requires security.

Security requires coordination.

And coordination increasingly requires political trust.

For Baghdad and Erbil, protecting foreign oil companies may become the beginning of something larger—a redefinition of how federal Iraq manages security, energy, and power in an era of regional competition.

Whether this becomes a temporary arrangement or a lasting strategic shift will depend not on speeches, but on actions in the months ahead.

#Iraq #Kurdistan #Oil #EnergySecurity #Peshmerga #MiddleEast #Geopolitics #Baghdad #Erbil #KurdishPolicyAnalysis

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