After drone strikes halted production, foreign oil companies resume Kurdistan operations with cautious optimism.
A spokesperson for the American company Hunt Oil announced that their company has resumed operations in the Kurdistan Region, one month after halting work in an oil field near the city of Duhok due to drone attacks.
Earlier, the Norwegian company DNO had also confirmed the resumption of oil production in the Kurdistan Region.
Hunt Oil is engaged in oil extraction at the Ba’adre field in Shekhan district, Duhok province. This field was attacked twice by drones last month, forcing the company to completely suspend operations and oil production.
Hunt Oil is one of the largest private sector companies in the United States, operating both domestically and internationally. Headquartered in Texas, the company has been active in oil extraction for more than 90 years.
Barham Gardi, an oil and energy expert, told The Kurdish Globe: “Each of the American companies HKN, Western Zagros, and Hunt Oil are operating in Kurdistan. They have investments as owners of oil fields. Those who stopped their work due to fear of drones have now resumed operations.” He clarified that both HKN and Hunt Oil have officially announced the resumption of operations. Western Zagros, however, halted production at the Sarqala oil field in Garmian with the suspension of oil exports on March 25, 2023, though it still holds a 40% stake in that field.
Following the drone attacks, the U.S. Consulate in Erbil issued a statement condemning the incidents targeting oil fields in the Kurdistan Region. The statement said the United States strongly denounces the drone attacks across Iraq, including those on July 14 and 15 that struck critical infrastructure in the Khurmala and Sarsang oil fields.
The statement also noted that the Iraqi government must use its authority to prevent armed groups from carrying out such attacks against sites within its territory, including those hosting Iraqi and international investments. It stressed that these attacks are unacceptable, undermine Iraq’s sovereignty, and damage efforts to attract foreign investment. The consulate further called on the Iraqi government to investigate who is behind the attacks and hold them accountable.
Currently, American companies in Kurdistan have resumed oil exports, and it is expected that oil production in the region will increase in the near future. According to the agreement with Iraq, more oil will be exported through SOMO step by step.
The drone attacks on Kurdistan’s oil fields were dangerous and came at a time when both the Kurdistan Regional Government and the Iraqi federal government had reached an understanding to resume oil exports from the Kurdistan Region.
Dr. Sabah Subhi, a member of the Oil and Gas Committee in the Iraqi Parliament, told The Kurdish Globe: “Yes, currently most of the oil companies have resumed operations in the fields, especially the American companies, and it is expected that Kurdistan’s oil exports will increase.”
He also added: “Some of the fields suffered significant damage, which caused a decrease in oil production in Kurdistan.”
The Kurdish Globe