IRAQ – Explosions Force Two More Oil Companies to Halt Output in Kurdistan

Two additional oil producers announced on Wednesday that they have suspended production operations in Iraq’s semi-autonomous Kurdistan region after multiple explosions struck local oil facilities.

Norwegian energy firm DNO confirmed it has paused output at its Tawke license area following blasts that damaged two separate sites early Tuesday.

The Tawke license — which includes the Tawke and Peshkabir oilfields — represents a significant asset for both DNO and the Kurdish region.

According to the company, one explosion damaged a small storage tank at Tawke, while another incident affected surface processing infrastructure at the nearby Peshkabir field.

There were no injuries, and the company is currently assessing the damage. DNO expects production to resume once inspections are complete and operations are deemed safe.

In 2024, DNO’s Tawke license produced an average of 78,615 barrels per day — a 70% year-on-year increase — as the company recovered from the extended shutdown of the Iraq-Turkey Pipeline. Production gains were achieved without drilling new wells, instead relying on well interventions, gas injection, and reactivating existing wells.

DNO operates the Tawke license with a 75% stake, while its partner, Genel Energy International, owns the remaining 25%.

Meanwhile, Gulf Keystone Petroleum, another operator in the region, also announced Wednesday that it has shut in production at its Shaikan field as a precaution, citing reports of nearby explosions. The company stated that its facilities were unaffected but that it has implemented measures to ensure employee safety.

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