A new impetus for the development of Iraqi Kurdistan's Miran gas field has materialised, as US firm HKN Energy and the ONEX Group confirmed a binding term sheet with the Kurdistan Regional Government’s (KRG) Ministry of Natural Resources (MNR). The agreement, revealed this week, will see the field advanced through Miran Energy, a freshly minted joint venture.

The Miran field, situated in Iraqi Kurdistan, boasts an estimated 8 trillion standard cubic feet (scf) of recoverable natural gas. This accord initiates a phased development, with projections of over $40bn in long-term value.

Russell Freeman, HKN Energy’s CEO, underscored the deal's significance. “This agreement marks a significant milestone not only for our companies, but for the energy future of the Region,” he commented. Mr Freeman elaborated, “Through Miran Energy, we are combining the strengths of HKN and ONEX to responsibly develop one of the region’s most strategic gas resources.”

Development will occur in stages, with initial gas production targeting domestic needs, thereby supporting regional energy supply, economic growth, and potentially wider demand. Miran's substantial reserves are key to the region's long-term energy security, and the initiative highlights ongoing US investor collaboration with the KRG.

This development follows prior complexities. In 2021, the MNR terminated London-listed Genel Energy’s production-sharing contracts (PSCs) for Miran and the Bina Bawi field, where Genel held 100%.

Genel, at the time, argued the KRG had “no grounds for issuing its notices of intention to terminate,” expressing a wish “to continue operations under the PSCs and to work with the KRG on the development of these fields.” The company pledged to “take steps to protect its rights under the PSCs and, if necessary, seek compensation, including for its material investment,” subsequently launching arbitration.

In April this year, Genel updated on the arbitration, reporting receipt of the Tribunal's Final Award on Costs. This mandated Genel’s subsidiary, Genel Energy Miran Bina Bawi Limited (GEMBBL), to pay the KRG’s recoverable costs. The claim was brought by the KRG in December 2021 against GEMBBL at the London Court of International Arbitration.

The Tribunal ordered GEMBBL to pay the KRG $26.9mn for costs, plus interest – roughly $9mn less than the KRG's initial claim, as Genel disclosed in its January 2025 trading update. This resolution appears to have cleared the path for the KRG to engage new partners for the Miran asset.