Gulf Keystone oilfield in Iraqi Kurdistan resumes production following drone attack

Gulf Keystone Petroleum said that it has resumed oil production at the Shaikan field in Iraq's semiautonomous Kurdistan Region, which had been halted by drone attacks last month.

Last month, officials from the energy sector said that repeated drone attacks on oilfields across the region reduced crude production, and the output of other companies, by between 140,000 and 150,000 barrels a day.

Gulf Keystone signed a production-sharing contract with the Kurdistan Regional Government of Iraq, which gives it an 80% interest in Shaikan. Shaikan is located 60 km (37 miles), northwest of Erbil.

Gulf Keystone announced in a press release that "production operations have recently resumed at the Shaikan field following a security evaluation and consultation with Kurdistan Regional Government."

It said that the company would provide an update on production and sales in its announcement of first-half results later this month.

The company said that it continues to engage actively with government stakeholders in regards to a resumed pipeline exports. It is ready to restart the process as soon as possible if written agreements are secured.

Kirkuk-Ceyhan Pipeline has been off line since 2023 after arbitration court ruled Turkey must pay $1.5 billion damages for unauthorised imports between 2014-2018. The ruling is being appealed by Turkey. (Reporting and writing by Nayera Abadalla, Yousef Saba; editing by Joe Bavier).

(source: Reuters)