Oil Production Suspended Across Iraq Amid Regional Tensions

PUKMEDIA

Iraqi-Turkish oil pipeline.

The Basra Oil Company has announced the suspension of oil production at the Rumaila field after reserves reached critical levels. Meanwhile, Kurdish media report that oil exports via the Turkish port of Ceyhan have been completely halted since Monday.

Sources at the North Oil Company stated that the decision to stop exports through Ceyhan was taken by the oil companies themselves.

Oil operators in the Kurdistan Region have informed the federal Ministry of Oil that, due to the current regional situation, they are unable to continue operations and will suspend them until conditions stabilise. Shamaran Oil Company reported yesterday that its partners and operators at the Atrush and Sarsang oil fields in Duhok Governorate had temporarily halted production as a precautionary measure. The announcement followed a similar statement from Gulf Keystone Oil Company, which operates the Shekhan field, confirming a precautionary suspension of oil production due to security concerns.

The Basra Oil Company said in a statement that the decision was prompted by “serious international political developments and the subsequent closure of the Strait of Hormuz, which has disrupted shipping and prevented oil tankers from entering the Gulf.” The company added that these conditions had led to a shortage of available tankers at southern ports, halted loading at some export facilities, and caused critically high oil storage levels. Operations management has called for a complete halt to production and pumping at the Rumaila field, effective from today, 3 March 2026, until exports return to normal.

In response to the uncertainty, Brent crude prices rose by $7 this afternoon, reaching $85.06 per barrel — the highest level since July 2024. In addition, Dana Gas announced last Saturday that it had suspended natural gas production from the Khor Mor field in Chamchamal district of Sulaymaniyah Governorate. The field, which produces 750 million cubic feet per day, supplies the majority of the Kurdistan Region’s electricity.



PUKMEDIA