HKN Energy: Kurdistan Emerges as Stable Energy Hub Amid Global Shifts

ERBIL (Kurdistan24) – Matthew Zais, Vice President of Government Affairs at HKN Energy, affirmed that despite years of disruption and regional uncertainty, the Kurdistan Region has proven its ability to become a stable hub for energy production and investment. In an exclusive interview with Kurdistan24, Zais underscored that the resumption of oil exports will not only revitalize the Kurdistan Region’s economy but also send a decisive signal to international markets and investors.

Zais highlighted the significance of the newly brokered oil export agreement, which is set to resume flows through the Iraq–Turkey pipeline after being halted in March 2023. “We’ve been attempting to resume exports for the last two and a half years,” he said, describing the accord as “the result of intense negotiations over the last nine months” and a “landmark achievement.”

Under the interim framework, he explained, international oil companies (IOCs) will receive $16 per barrel, with revenues proportionally distributed. An internationally recognized consultant has been tasked with reviewing oil quality, facilities, contract models, and terms. Their findings will determine the full implementation of the agreement, ensuring long-term contractual certainty for investors.

According to Zais, once the consultant’s recommendations are applied, IOCs will be able to increase production to pre-closure levels within one to two years. “International oil companies cannot make significant investment decisions without contractual certainty,” he emphasized, stressing that the agreement provides the foundations for sustained growth.

Zais credited the Trump administration with playing a decisive role in reopening the pipeline, noting that Secretary of State Marco Rubio consistently pressed the Iraqi government to finalize the deal. “It’s hard to imagine us reaching this agreement without the strong U.S. support that was provided throughout this process,” he remarked.

He described the resumption of Kurdish oil exports as a vital signal to Mediterranean markets, where refineries had been forced to seek crude from alternative sources, including Russia, during the suspension. “It’s a critical signal that oil from Iraq and the Kurdistan Region is going to return to the Mediterranean and provide diversification of supplies for Europe and beyond,” he said.

Beyond crude exports, Zais pointed to the development of the Muran gas field, one of the largest in Iraq and the Kurdistan Region, as a milestone for U.S. investment. Alongside Western Zagros, the project will provide much-needed electricity for both Kurdistan and federal Iraq. “It clearly represents another significant commitment by U.S. companies to invest in the sector,” he said, calling gas development “critical” for Iraq’s future.

He argued that reliable electricity requires a shift away from heavy subsidies and toward market-driven tariffs, a challenge that both Kurdistan and Iraq must confront. “Once you eliminate subsidies and implement tariffs, the boom from a free-market economy and the ability to have 24/7 electricity is so significant. It doesn’t just improve people’s lives at home—it transforms the entire economy,” Zais noted.

Reflecting on the Kurdistan Region’s trajectory over the past two decades, Zais said its openness to foreign investment has enabled it to move from zero production to over 400,000 barrels of oil per day without domestic financing. “That was completed with all international companies like ours financing the entire development,” he stressed.

The reopening of the Iraq–Turkey pipeline, he added, marks a new chapter for Kurdistan’s energy sector, reassuring U.S. and international investors that the Region remains an attractive destination for capital. “Now that the pipeline is open, there are a lot of positive trends that can occur,” he said, emphasizing that both increased oil production and expanded natural gas exports to federal Iraq, neighboring states, and even Europe are within reach.

Concluding the interview, Zais reiterated that the Kurdistan Region has demonstrated resilience amid turbulence. “Despite all the challenges, the Kurdistan Region has been able to emerge as a stable hub for energy production in the area,” he affirmed.

By reopening its energy lifeline to global markets and embracing long-term gas development, Kurdistan, Zais argued, is not only securing its own economic future but also reinforcing its role as a key player in regional and international energy stability.

HKN’s Official Statement

In a formal statement released from Dallas, Texas, on September 26, 2025, HKN Energy welcomed the agreement to resume exports and clarified key provisions. The company commended Prime Minister Mohammed Shia’ al-Sudani for his decisive leadership in making the breakthrough possible and expressed gratitude for the vital role played by Prime Minister Masrour Barzani, whose steadfast partnership was described as essential to reaching the agreement. HKN also extended thanks to Sudani’s Chief of Staff and Barzani’s Head of Diwan for spearheading months of productive negotiations.

Matthew Zais, speaking in his capacity as HKN Energy’s Vice President, stated: “The reopening of the Iraq–Türkiye Pipeline is a vital step for Iraq, the Kurdistan Region, and international investors. We are grateful for the leadership shown by Prime Minister Sudani and Prime Minister Barzani, and for the critical support of the U.S. Government. This agreement provides an important interim path forward, and we remain committed to full implementation that ensures stability and prosperity for all stakeholders.”

The statement further explained that all parties have agreed to appoint an internationally recognized independent consultant to review assets, infrastructure, oil quality, and volumes. This process will affirm appropriate total compensation to IOCs compared with amounts owed under existing commercial contracts. The interim compensation is based on a $16 per barrel payment to cover production and transportation costs for all barrels exported from Kurdistan, with allocations fully directed to the IOCs. A subsequent adjustment will be made once the consultant’s work is complete, which HKN believes will align entitlements with export market prices.

The company stressed that this agreement is an interim step and that full implementation will be key to ensuring long-term stability of exports and shared prosperity for both Iraq and the Kurdistan Region. “HKN Energy remains committed to working with all parties to achieve these goals,” the statement concluded.