HKN Energy says operations at Kurdistan oil facility suspended

HKN Energy says operations at Kurdistan oil facility suspended

Erbil, Kurdistan Region - An explosion at an oil field in the Kurdistan Region’s Duhok province has led to the suspension of operations at the facility. The incident, which occurred on July 15, 2025, was reported by HKN Energy, the majority shareholder of the Sarsang block [2].

According to HKN Energy, the explosion took place at approximately 7:00 AM local time at one of its production facilities. While no injuries were reported, the facility remains on fire, and emergency response teams are actively working to contain the situation. The company has stated that the facility was targeted by a drone strike, amidst a spate of attacks against the Kurdistan Region [2].

The incident comes amid ongoing tensions between the Kurdistan Regional Government (KRG) and the central government in Baghdad over oil exports and public-sector salaries. The long-running dispute has led to the suspension of oil exports from the KRG, depriving the region of an estimated $8-9 billion in lost oil income [1].

The White House has urged both sides to restart oil flows immediately, warning that the continued freeze is harming foreign investment and regional economic stability. The KRG had been exporting approximately 400,000 barrels per day (bpd) of crude through the Iraq-Turkey pipeline to Ceyhan prior to the March 2023 halt [1].

The incident at the Sarsang block is the latest in a series of attacks targeting oil facilities in the Kurdistan Region. On Monday, two explosive-laden drones targeted the Khurmala oil field, southwest of Erbil, after another explosive-laden drone was intercepted near Erbil International Airport [2].

The Kurdistan Region’s interior ministry has accused the Popular Mobilization Forces (PMF) of being responsible for the attacks, although no party has claimed responsibility. Baghdad has rejected these allegations as "unacceptable" [2].

The suspension of operations at the Sarsang block adds to the challenges faced by the KRG in ensuring the stability of its oil sector. The region's economic health is heavily dependent on oil revenues, and any disruption to production can have significant implications for the local economy and regional stability.

References:
[1] https://oilprice.com/Latest-Energy-News/World-News/Baghdad-KRG-Oil-Deal-Stalls-Despite-Reports-of-Breakthrough.html
[2] https://www.rudaw.net/english/kurdistan/15072025