HKN Energy says no injuries reported from Kurdistan blast

HKN Energy says no injuries reported from Kurdistan blast

An explosion at the Sarsang block in the Kurdistan Region's Duhok province on July 15, 2025, resulted in no reported injuries, according to HKN Energy, the majority shareholder in the facility. The incident occurred at approximately 7:00 AM local time, with the company stating that emergency response teams are actively working to contain the situation [2].

The blast was reportedly caused by a drone strike, amid a spate of attacks against the Kurdistan Region. This is the latest in a series of drone attacks that have been ongoing since the 12-day conflict between Israel and Iran ended on June 13. No party has claimed responsibility for the attacks, but the Kurdistan Region’s interior ministry has accused the Popular Mobilization Forces (PMF) of being involved, allegations that Baghdad has rejected as “unacceptable” [2].

HKN Energy holds a 62 percent stake in the Sarsang block and has recently signed multibillion-dollar deals with the Kurdistan Regional Government (KRG) to develop the Miran Gas Field. The company's stock price may be affected by the stability of the region and the ongoing negotiations between Baghdad and the KRG over oil exports and public-sector salaries [3].

The long-running oil export dispute between Baghdad and the KRG has deepened, with Iraq’s Cabinet failing to address the issue in its latest session. This comes despite reports that negotiations had reached the “final stages,” with Baghdad poised to authorize Kurdish oil exports via the Turkey-based Ceyhan terminal [3].

The Kurdistan Region’s oil exports through the Iraq-Turkey pipeline to Ceyhan accounted for over 10 percent of Iraq’s total oil exports before the March 2023 pipeline shutdown. The continued disruption has deprived Erbil of an estimated $8-9 billion in lost oil income, while also straining Turkey’s role as a regional transit hub [3].

Investors should closely monitor the situation, as the stability of the Kurdistan Region and the resolution of the oil dispute could significantly impact the region's oil and gas industry and the financial performance of companies like HKN Energy.

References:
[1] https://www.aljazeera.com/news/2025/7/12/pkk-disarmament-opens-new-page-in-history-for-turkiye-erdogan-says
[2] https://rudaw.net/english/kurdistan/15072025
[3] https://oilprice.com/Latest-Energy-News/World-News/Baghdad-KRG-Oil-Deal-Stalls-Despite-Reports-of-Breakthrough.html