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The American Delta Crescent Energy LLC oil company has signed a deal with the Syrian Democratic Forces (SDF) regarding the development of oil fields in northeastern Syria, according to a report in the Al-Monitor news portal.

Sources that spoke with Al-Monitor said that the deal was made to “develop and modernize” existing fields in the area and that it was made “with the acknowledgement and encouragement of the White House.”

Ankara and Washington have long been at odds over the latter’s support of the SDF and its armed unit YPG, which Turkey considers to be the Syrian outpost of the banned militant Kurdistan Worker’s Party (PKK).

However, the sources reportedly indicated that Ankara did not display a negative reaction toward the American oil company’s agreement with the SDF.

Senator Lindsey Graham, a Republican and close ally of American President Donald Trump, engaged in talks with SDF leader Mazlum Kobani regarding the American company’s development of oil fields in the area.

U.S. Secretary of State Mike Pompeo was said to have approved the agreement.

Most of Syria’s oil supply originates from the northeastern part of the country that is controlled by the Syrian forces, which have been backed by the United States, particularly as the YPG fought to drive ISIS out of their self-declared capital of Raqqa.