US energy firms want to expand investment in Kurdistan: Union chief

ERBIL, Kurdistan Region - American energy companies are exploring new opportunities in the Kurdistan Region at a “pivotal moment” for the sector, amid renewed hopes for more stability following the reopening of the Iraq–Turkey oil pipeline, the head of the US-Kurdistan Business Council (USKBC) said on Monday.

David Tafuri, who is leading a delegation of a group of US energy firms to the Kurdistan Region, told Rudaw that the energy firms operating in the Region are interested to make sure that the recent "interim deal" signed between the Iraqi government, the Kurdistan Regional Government (KRG) and the oil companies "stays in place" and that the companies "will get paid for the hard work that they're doing."

Kurdistan Region’s oil exports resumed in late September following the tripartite deal. The exports were suspended in March 2023 due to an arbitration case between Turkey and Iraq.

The US delegation was received by Prime Minister Masrour Barzani on Sunday "to discuss developments in the Kurdistan Region and Iraq," according to a statement from Barzani's office.

"We outlined the reform agenda of the ninth cabinet across various sectors, particularly in energy and natural gas production," read the statement, adding that Barzani "stressed the importance of expanding American investment in the Kurdistan Region."

Tafuri also encouraged Kurdish companies to consider entering the US market, noting “a high degree of affinity for Kurds” among Americans.

“Those Kurdish companies that have sought to work in the United States… have been successful,” he said, pointing to strong support from a “very large Kurdish diaspora” that facilitates partnerships and business connections.

Tafuri said his delegation also met with the chairman of the Kurdistan Region’s Investment Board Mohammed Shukri, who outlined priority sectors for future growth, including manufacturing and agriculture.

“He talked about... getting some American companies to set up manufacturing plants or assembly plants here,” Tafuri said, describing it as a move that would “increase employment" in the Region.

Tafuri also credited the KRG and local businesspeople for improving electricity supply over the past decade.

“I remember in the time frame of 2008 to 2012, there were blackouts here in the Kurdistan Region,” he said. “The rest of Iraq has been less successful than the Kurdistan Region in increasing the level of electricity.”

He said the Region’s "surplus" power is “a credit to the KRG and to the business leaders who have built the infrastructure.”

Runaki - meaning “light” in Kurdish - is a KRG initiative to provide uninterrupted electricity as part of its efforts to reform and stabilize the energy sector. Around four million residents of the Kurdistan Region, which according to the KRG's electricity ministry makes up more than 50 percent of the population, now have access to the 24-hour program. The Iraqi electricity ministry said in September that it eyes the initiative to end the electricity crisis in the rest of Iraq.

The United States currently ranks 6th among countries with the highest number of companies in the Kurdistan Region, according to data Rudaw has obtained from relevant authorities in Erbil.

Washington and Erbil enjoy close ties. The US has been a key supporter of the Kurdistan Region since it gained autonomy in the 1990s, backing the development of the Kurdish Peshmerga, leading the global coalition against ISIS, and supporting ongoing reform efforts. The US is also preparing to open a new consulate general in Erbil, set to be the largest in the world.

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