London-listed Gulf Keystone has temporarily shut in crude production at its Shaikan field in northern Iraq's semi-autonomous Kurdistan region as the US and Israel's conflict with Iran widens across the region.
Gulf Keystone said it had taken precautionary measures to protect staff in light of the "developing regional security environment", adding that none of its assets had been physically affected. The company said it is monitoring the situation and will provide updates as appropriate.
Shaikan, one of Kurdistan's largest producing fields, produced just over 41,500 b/d in 2025. Gulf Keystone's 2026 production guidance stands at 37,000–41,000 b/d, reflecting facility upgrades, planned well workovers and natural decline.
The precautionary halt follows the suspension of gas flows from the Khor Mor field on 28 February, after Abu Dhabi-listed Dana Gas stopped supplying power plants because of the "abnormal situation and war taking place in the area", according to a joint statement from the Kurdistan region's natural resources and electricity ministries. The gas halt is expected to cut electricity generation capacity by 2,500–3,000MW, with authorities seeking alternative supply to limit the shortfall, the ministries said.
Iraqi Kurdistan, alongside other oil-producing countries in the Mideast Gulf, has come under attack from Iranian drones and missiles since the US and Israel launched a major military operation against Iran on 28 February.
Northern Iraq's energy infrastructure has been repeatedly targeted during previous periods of regional fighting. The Khor Mor gas field has been attacked multiple times in recent years by drones and rockets widely attributed to Iran-aligned militias, while Erbil's international airport — which hosts US forces — has also faced intermittent drone attacks.
No direct damage has been reported at Shaikan, but the twin precautionary suspensions highlight the vulnerability of upstream and power infrastructure in the Kurdistan region amid widening regional hostilities.
