By Summer Said
Oil production in Iraqi Kurdistan remains unaffected despite
advances by Islamic State militants nearby that have led some
energy companies to halt operations in the semiautonomous region,
its Ministry of Natural Resources said Saturday.
Oil companies have begun evacuating staff and suspending
operations at some fields in Kurdistan, northern Iraq, after the
U.S. launched airstrikes intended to halt the advance of the Sunni
extremists toward the region's capital, Erbil.
"The enemy has not been able to target oil operations. Oil
production in the region remains unaffected and is being delivered
to both the domestic and export markets," the ministry said. "The
Kurdistan Regional Government is expecting that the producing
companies will ramp up production in the coming weeks as ongoing
export infrastructure improvements come online as planned."
The security situation in the area bordering Iraqi Kurdistan has
deteriorated since the militant group calling itself Islamic
State--formerly known as the Islamic State of Iraq and al-Sham, or
ISIS--pushed into territory held by the Peshmerga, the region's
security force, raising serious concerns about areas previously
considered safe.
London-based Afren PLC and Canada-listed Oryx Petroleum both
said Friday they had suspended parts of their operations in the
country. Anglo-Turkish company Genel Energy PLC said it was
withdrawing some nonessential personnel, following a similar
announcement by U.S. oil major Chevron Corp. on Thursday.
Earlier Saturday, Abu Dhabi National Energy Co., or Taqa, said
it has suspended its operations and significantly reduced staffing
levels at the Atrush Block in Kurdistan due to escalating
instability in the region.
Kurdistan described the firms' moves as "precautionary
measures," but warned the companies not to take any steps without
close coordination with the Ministry of Natural Resources.
Write to Summer Said at summer.said@wsj.com
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