Iraq’s Oil Ministry has signed a drilling contract for a field located in the PUK-controlled Kifri district. So far, the KRG and its Ministry of Natural Resources have not issued any official response.

The contract—officially for the exploratory well “Kifri A”—was signed between the Iraqi Drilling Company, the Oil Exploration Company, and the state-owned North Oil Company. The signing ceremony was overseen by Deputy Prime Minister for Energy Affairs and Oil Minister Hayan Abdul Ghani, signaling the project’s importance within Iraq’s broader energy strategy.

This move comes shortly after KRG Prime Minister Masrour Barzani signed two oil and gas contracts with U.S. firms—also involving fields located in PUK-controlled territory.

Although Kifri is officially part of Diyala Governorate and lies within Iraq’s constitutionally disputed territories, it is de facto governed by the PUK and administratively functions as part of Sulaimani Governorate. Despite this, the North Oil Company continues to frame the project as part of its operations in Salah al-Din province. The company’s director stated that it would provide logistical support to ensure successful drilling.

The Oil Minister noted that this contract marks the start of a nationwide program to drill 15 exploratory wells aimed at increasing Iraq’s oil and gas reserves. The project will be implemented using national resources and state companies, following the recent availability of financial allocations.

Expectations for the Kifri A well are high: officials believe it may contain light oil and commercially viable quantities of gas. This is the first exploratory well to be drilled in the area.