Latest news with #HKN
Iraq Business
a day ago
- Business
- Iraq Business
Iraq Allows HKN Energy to Bypass Standard Qualification Criteria
By John Lee. The Iraqi Cabinet has approved an exception for US-based HKN Energy, allowing it to bypass the standard qualification criteria and receive a direct invitation to develop the Hamrin oil field in northern Iraq. Last week, the Ministry of Oil signed an agreement in principle with HKN to develop the field, aiming to increase its output to 60,000 barrels per day (bpd), up from the current 20,000-25,000 bpd, and to capture and utilise 45-50 million standard cubic feet per day (mmscfd) of associated gas for power generation. Oil expert Ahmed Mousa Jiyad has questioned the agreement (see comments section at the bottom of (Source: PMO) Tags: Balad, cg, featured, gas production, Hamrin, HKN, HKN Energy, Iraq Oil Production News, Nasiriyah, North Oil Company, North Oil Company (NOC), oil exploration, United States
Rudaw Net
3 days ago
- Business
- Rudaw Net
Sarsang oil field attack and the Hamrin oil, gas contracts: five key questions
Also in Opinions Kurdistan Region's oil production before, after drone strikes Decoding Ocalan's message: The question of PKK disarmament and the future of Kurdish politics Kurdish intellectuals face challenges amid Turkey's Kurdish question The 12-day war and silent transformations of western Asia A+ A- Early Tuesday, the Sarsang oil field was attacked by a drone. The American company HKN, which operates the field and owns 62 percent of its shares, is the main stakeholder. Hours later, the Iraqi ministry of oil announced the signing ceremony of the contract between the US-based HKN Energy and the North Oil Company for the development of the Hamrin oil field, with a daily production capacity of 60,000 barrels of oil and 45 to 50 million cubic feet of gas. 'The attack caused no casualties, but total production, which is 30,000 barrels of oil per day, has been halted until all assessments of the situation are completed,' HKN said on X. Drone attacks have become alarmingly routine in the Kurdistan Region. Two drones struck Khurmala on Monday, adding to a series of previous drone attacks that have targeted both civilian areas and political security sites across the Region. Notably, the recent targeting of the Sarsang field coincided with the presence of Matthew Zais, Deputy Director of HKN Energy, at the Iraqi Ministry of Oil, where he was working on finalizing a new contract for the company. Whatever the dimensions of these attacks may be, they highlight the weakness of the state and the dominance of political forces, as well as both legal and illegal groups in Iraq. These groups send three important signals through the attack on Sarsang. First, from a technical and security perspective, the attacks demonstrate the superiority of the aggressor. Second, from an economic standpoint, the objective appears to be the reduction of the Kurdistan Region's oil production capacity and disruption of its current sales method. Third - and perhaps most importantly - there is a political dimension that may be the primary motive behind the attack: to serve as a warning for the US not to penalize Iraq's State Oil Marketing Organization (SOMO) for its oil sales. In recent days, following US President Donald Trump's letter to the Iraqi prime minister regarding the imposition of a 30 percent tariff on Iraqi goods starting August 1, there have also been indications that the United States has warned Iraq about the sale of Iranian oil. On July 3, the US Department of the Treasury added several individuals and companies to its sanctions list for selling Iranian oil under the guise of Iraqi oil. Previously, Iraq's Oil Minister, Hayyan Abdul Ghani, stated that 'Iran uses Iraqi documents to sell its oil.' This statement helps explain the longstanding discrepancy between the revenue data reported by Iraq's Oil Ministry and that of the Finance Ministry. Iran's total oil production is also higher than Iraq's. According to Energy data for 2024, Iran's daily oil production was 5.062 million barrels, while Iraq produced 4.398 million barrels per day. This means that, in terms of annual production growth, Iran increased its output by 10.6 percent, whereas Iraq's production rose by only one percent. Within the borders of Duhok province, there are several other oil fields where international companies, particularly British, Norwegian, and Canadian ones, are operating as production partners. These include the Tawke, Peshkabir, Shekhan, and Bashiqa oil fields, which are geographically more accessible and, in some cases, even closer than Sarsang, if the sole objective of the attackers had been economic disruption or security destabilization. However, the selection of Sarsang as the target appears clearly intentional. These attacks underscore the complexity of Iraq's political system and the capabilities of various armed actors within it. Currently, oil production in the Kurdistan Region ranges between 280,000 and 300,000 barrels per day. However, as of the morning of Tuesday, production dropped by nearly 30,000 barrels. According to the Iraqi oil minister, the remaining disagreement between Erbil and Baghdad over resuming oil exports through the Ceyhan port in Turkey amounts to a gap of just 19,000 barrels. We should not overlook the fact that the timing and targeting of the Sarsang field demonstrate the advanced and sophisticated capabilities of the attacking side from all angles. This poses a serious threat that must not be forgotten, especially if a new agreement comes into effect. Another important reality is that targeting the HKN company effectively means targeting the lobbying power of international oil companies within the US Congress and administration. Much of the US administration's statements and exerting pressure on Erbil and Baghdad to resume Kurdistan's oil exports via pipelines - and to reach a new agreement - was driven by the interests tied to this company. Finally, while it is true that the attack took place and the agreement was signed, several critical questions remain unanswered. First: If the US Treasury Department threatens to sanction SOMO, should the illegal groups in Iraq target part of the Iraqi state's territory and demand its surrender along with its revenues? Second: Is there division among the current rulers of the state administration in managing files, or are official institutions one thing and what actually happens another thing? Third: Does the signing of HKN company's contract with the Iraqi ministry of oil put an end to the repeated claims of unconstitutional and illegal contracts with the Kurdistan Region? Fourth: Why did Iraq choose the HKN company from among dozens of major American oil companies at this stage? What connection does this have to lobbying? Fifth: What will be the response of the US administration to harming American companies and investors? Mahmood Baban is a research fellow at the Rudaw Research Center. The views expressed in this article are those of the authors and do not necessarily reflect the position of Rudaw.
Iraqi News
16-07-2025
- Politics
- Iraqi News
Drone attack disrupts oil production at oilfield in northern Iraq
Baghdad ( – A drone assault interrupted operations at the Sarsang oilfield in the Kurdistan region of Iraq on Tuesday, a few hours before its US operator, HKN, inked an agreement for the development of another oilfield in the country. The Sarsang field is operated by HKN Energy, a US firm engaged in hydrocarbon exploration headquartered in Texas with operations in Iraqi Kurdistan. Two hours after the morning attack, HKN Vice President Matthew Zais met with Oil Minister Hayan Abdel-Ghani in Baghdad to sign a preliminary agreement for the development of the Hamrin oilfield in northern Iraq, according to the Iraqi oil ministry. Two hours after the morning attack, HKN Vice President Matthew Zais met with Oil Minister Hayan Abdel-Ghani in Baghdad to sign a preliminary deal to develop the Hamrin oil field in northern Iraq, according to Reuters. Chargé d'Affaires at the US Embassy in Baghdad Steven Fagin, who attended the ceremony held to sign the agreement, denounced the drone strikes on oil facilities in Iraqi Kurdistan and encouraged the Iraqi government to investigate the incident and hold perpetrators accountable. Two engineers told Reuters that production at the Sarsang field was suspended as a precautionary measure following an explosion. Authorities in Iraq's Kurdistan region verified that the explosion was caused by a drone assault. One of the engineers working in the oilfield said that billows of smoke were spotted coming from the Sarsang field in the northern Iraqi province of Dohuk. On Monday, two explosive-laden drones were shot down above the Khurmala oil field in the northern Iraqi province of Erbil at 20:20 and 20:25 local time, respectively.
Business Recorder
16-07-2025
- Business
- Business Recorder
Drone attack shuts US-run oil field in Iraqi Kurdistan
ARBIL, (Iraq): A drone strike on Tuesday forced a US company to suspend operations at an oil field in Iraq's autonomous Kurdistan region, the latest in a string of attacks targeting the region's energy facilities. The Kurdistan Regional Government said the Sarsang oil field in Duhok province was hit, denouncing the strike 'an act of terrorism against the Kurdistan Region's vital economic infrastructure'. The attack followed similar drone strikes a day earlier on an airport hosting US troops and on an oil field in neighbouring Arbil province. HKN Energy, the US firm operating the Sarsang site, said the blast occurred at about 7:00 am (0400 GMT) at one of its production facilities. 'Operations at the affected facility have been suspended until the site is secured,' it said in a statement. A fire broke out but caused no casualties. HKN said emergency teams later contained the blaze. In the past few weeks, Iraq — particularly the Kurdistan region — has seen a spate of unclaimed drone and rocket attacks. Long plagued by conflict, Iraq frequently experiences such attacks, often linked to regional proxy struggles between Iran and the United States and its ally Israel. Kurdistan's presidency condemned attacks on the region's infrastructure. It urged Baghdad to find the perpetrators and take all necessary measures to prevent further incidents. The US embassy denounced the recent drone strikes, including on 'critical infrastructure' at oil fields in Kurdistan. 'These attacks are unacceptable,' the embassy said on X, urging Baghdad to investigate. The Iraqi government 'must exercise its authority to prevent armed actors from launching these attacks against sites... including locations where Iraqi and international companies have invested in Iraq's future', it added. The strike at the Sarsang field came a day after other explosive-laden drone attacks were reported elsewhere in Kurdistan. One drone was shot down near Arbil airport, while two others hit the Khurmala oil field in the same province, causing material damage. There has so far been no claim of responsibility for those attacks, or for the one on Tuesday. On July 3, the Kurdistan authorities said a drone was downed near Arbil airport and blamed the Hashed al-Shaabi — a coalition of pro-Iran former paramilitaries now integrated into the regular armed forces.
&w=3840&q=100)
First Post
15-07-2025
- Business
- First Post
Drone strike hits Kurdistan oil field, US firm halts operations
The Arbil government said the Sarsang oil field in Duhok province was hit, denouncing the strike as 'an act of terrorism against the Kurdistan Region's vital economic infrastructure'. read more A drone strike on Tuesday forced a US company to suspend operations at an oil field in Iraq's Kurdistan, the latest in a string of attacks targeting the autonomous region's energy facilities. The Iraqi government said it will investigate the attacks, which occurred months before legislative elections, at a time of simmering tension between Baghdad and the regional administration in Arbil mainly over oil exports. The Arbil government said the Sarsang oil field in Duhok province was hit, denouncing the strike as 'an act of terrorism against the Kurdistan Region's vital economic infrastructure'. STORY CONTINUES BELOW THIS AD It did not say who may be behind the attack, and there was no claim of responsibility. Tuesday's attack followed similar drone strikes a day earlier on an airport hosting US troops and on an oil field in Arbil province, near Duhok. HKN Energy, the US firm operating the Sarsang site, said a blast occurred at about 7:00 am (0400 GMT) at one of its production facilities. 'Operations at the affected facility have been suspended until the site is secured,' it said in a statement. A fire broke out but caused no casualties. HKN said emergency teams later contained the blaze. In the past few weeks, Iraq and particularly the Kurdistan region have seen a spate of unclaimed drone and rocket attacks. Long plagued by conflict, Iraq frequently experiences such attacks, often linked to regional proxy struggles between Iran and the United States and its ally Israel. Iraqi Kurdistan presents itself as a relative oasis of stability in a volatile Iraq, attracting foreign investors due to its close ties with the United States and European countries. 'Vital institutions' On Tuesday, Kurdistan's presidency condemned the latest attacks, warning that they 'pose a risk' to international investments and calling on Baghdad to find the perpetrators and prevent further incidents. STORY CONTINUES BELOW THIS AD Iraq's Prime Minister Mohammed Shia al-Sudani ordered an 'immediate and comprehensive investigation' into the attacks, his military spokesman Sabah al-Numan said. 'The nature and timing of these criminal acts indicate malicious intent aimed at creating confusion and harming Iraq and its vital institutions,' Numan added. Iraq is gearing up for legislative elections in November, which are often marked by heated political wrangling. The attacks also come at a time of heightened tension between Baghdad and Arbil over oil exports, with a major pipeline through Turkey shut since 2023 over legal disputes and technical issues. In May, Iraq's federal authorities filed a complaint against the autonomous Kurdistan region for signing gas contracts with two US companies, including HKN Energy. Iraq slammed the deals, saying all oil and gas development must be conducted through the federal government. A few hours after Tuesday's drone attack, Iraq's oil ministry announced an initial agreement with HKN to develop the Hamrin oil field in Salaheddin province. STORY CONTINUES BELOW THIS AD 'Unacceptable' The US embassy in Baghdad denounced the recent drone strikes, including on 'critical infrastructure' in Kurdistan. 'These attacks are unacceptable,' the embassy said on X, adding that the Iraqi government 'must exercise its authority to prevent armed actors from launching these attacks against sites… where Iraqi and international companies have invested in Iraq's future'. The Sarsang attack came a day after other explosive-laden drone attacks were reported elsewhere in Kurdistan. One drone was shot down near Arbil airport, while two others hit the Khurmala oil field in the same province, causing material damage. There has been no claim of responsibility for those attacks. Politicians close to the Kurdish authorities blamed pro-Iran groups, without offering evidence. On July 3, the Kurdistan government said that the Hashed al-Shaabi, a coalition of pro-Iran former paramilitaries now integrated into the regular armed forces, had downed a drone near Arbil airport. Baghdad rejected the accusation against 'an official Iraqi security institution'.
