A new deal for oil and budget cooperation between Baghdad and Erbil faces significant challenges to implementation, including crippling attacks on Kurdistan's oil sector.
Drones struck Tawke and Ain Sifni on Wednesday, marking three consecutive days of attacks on Kurdistan oil fields.
Attack on HKN-operated Sarsang field coincides with the company's signing of a preliminary upstream deal with the federal Oil Ministry.
Longtime energy MP talks about U.S. pressure on Baghdad and Erbil, the blame he places on KRG oil tactics, and the upside of the sitting oil minister entering elections.
Budget transfers to Kurdistan have been frozen since May as negotiations to restart oil exports falter.
Production and exports have not suffered major interruptions so far, but exodus of foreign oil workers and border closures highlight risks of disruption.
Political tensions skyrocket after recently announced gas deals, resulting in legal challenges and threats to Kurdistan's budget.
U.S. firms HKN and WesternZagros have signed agreements for upstream gas development at the Miran and Topkhana fields.
Iraq is once again leveraging upstream development to finance gas and power projects.
Cabinet taps state-run Midland Oil Company as operator for fast-track gas field development with help from SLB, but contentious ouster of Ukrzemresurs could spark litigation.
