Generic Hero BannerGeneric Hero Banner
Latest market news

Oil firms in Iraq Kurdistan shut in 200,000 b/d: Update

  • : Crude oil
  • 25/07/16

Updates with comments from the US State Department

Foreign oil companies operating in Iraq's semi-autonomous Kurdistan region have shut in more than 200,000 b/d of production following drone attacks on key oil fields, an industry group representing them said on Wednesday.

Operators are assessing damage to facilities and even firms that have not taken direct hits have taken fields off line, according to the Association of the Petroleum Industry of Kurdistan (Apikur), an industry body representing eight foreign oil companies operating in the region. The group called on the federal government of Iraq and on the Kurdistan regional government to take additional measures to ensure the safety of staff and facilities.

Individual members of Apikur, including Norwegian independent DNO and UK-listed Gulf Keystone, already reported shutting in production, in some cases as a precautionary measure.

The latest attacks on Wednesday targeted the Tawke, Peshkabir, and Ain Sifni oil fields, according to the Kurdistan region's Ministry of Natural Resources. In the previous two days, attacks targeted the Sarsang field operated by US independent HKN Energy, US firm Hunt Oil's facility in Baadre and the Khurmala field, according to the local authorities.

No group has claimed responsibility for the attacks. But in the first public accusation from a senior Kurdistan official, former Iraqi foreign minister Hoshyar Zebari on Wednesday blamed the attacks on Wilaya-aligned factions — a militia group loyal to Iran.

Deputy chief of staff to Kurdistan regional prime minister, Aziz Ahmad, via a social media post Wednesday, appealed to the US administration to enable the region "to defend ourselves", noting that the attacks targeted fields operated by two US companies.

"Still no call from [US secretary of state Marco Rubio]," Ahmad posted. "We need more than words."

The State Department called the attacks "unacceptable", adding that "we've expressed our dismay and our problem with them."

The attacks come as tensions between the Kurdistan region and Baghdad continue over the federal government's halt of salary payments to public servants and the prolonged suspension of oil exports through Turkey's Ceyhan port.

But both sides were reportedly close to a breakthrough in negotiations that could allow for the resumption of exports and a resolution to the salary dispute.


Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more