Drone strikes shut oilfields in Iraq’s Kurdistan, cut output by up to 150,000 bpd

Several oilfields halted operations due to significant infrastructure damage, the Kurdistan region’s Natural Resources Ministry said.

Drone attacks for a third day on oilfields in Iraq’s semi-autonomous Kurdistan region have slashed crude output by 140,000 to 150,000 barrels per day, two energy officials said on Wednesday, as infrastructure damage forced multiple shutdowns.

It was not immediately clear who was behind the attacks, and no group has claimed responsibility.

The region’s total production was around 285,000 barrels per day (bpd), Iraqi Kurdistan energy officials said.

Several oilfields halted operations due to significant infrastructure damage, the Kurdistan region’s Natural Resources Ministry said, adding that the attacks also aimed to threaten the safety of civilian workers in the energy sector.

Gulf Keystone Petroleum said it shut production at Shaikan field, one of the largest oil discoveries in Iraq’s Kurdistan region, due to attacks in its vicinity.

“As a safety precaution, GKP has decided to temporarily shut in production and has taken measures to protect staff. The company’s assets have not been impacted,” the company said in a statement.

Gulf Keystone has a production sharing contract with Iraq’s Kurdistan Regional Government (KRG) with an 80% working interest in the license of Shaikan, located around 60 kilometers (37 miles) to the northwest of the capital, Erbil.

“A number of terrorist attacks were carried out by a bomb-dropping drone on the oil fields of Tawke, Peshkabour, and Ain Sifni in the independent administration of Zakho and the district of Shekhan in Duhok province,” KRG’s Natural Resources Ministry said.

Norwegian oil and gas firm DNO, which operates the Tawke and Peshkabour oilfields in the Zakho area that borders Turkey, said it temporarily suspended production at the fields following explosions that caused no injuries.

“The damage assessment is underway and the company expects to restart production once the assessment is completed,” DNO said.

DNO’s shares fell around 5% after the attack and were poised for their worst day since June 25.

The fields were attacked by three bomb-laden drones, but there were no casualties, only material damage, Kurdistan’s counter-terrorism service posted on Facebook.

APIKUR, a group of eight oil firms operating in Iraqi Kurdistan, said later on Wednesday that a majority of its members, including those not targeted, have suspended production.

“The operators are assessing damage to production and other field facilities,” APIKUR said.

The Ain Sifni oilfield, operated by US-based Hunt Oil, was also attacked later in the Dohuk region of northern Iraq.

There were no further details on the attack.

On Tuesday, a drone attack halted production at the Sarsang oilfield in Iraq’s Kurdistan region hours before its US operator signed a deal with Iraq to develop another field.

Iraqi Kurdistan security sources said initial investigations suggested the drone came from areas under the control of Iran-backed militias.

On Monday, two drones fell on the Khurmala oilfield near Erbil in Iraqi Kurdistan, damaging water pipes at the field.