Gulf Keystone suspends operations at Duhok oil field

ERBIL, Kurdistan Region - London-listed Gulf Keystone Petroleum (GKP) announced Monday that it has "temporarily shut-in" operations at the Sheikhan oil field in Duhok province, describing the move as a "safety precaution." The decision comes amid the latest escalation in the US-Iran war.

The company said in a statement that the shut-in is due to "the developing regional security environment."

The announcement follows UAE-based Dana Gas's Thursday announcement that it had temporarily suspended operations at the Khor Mor gas field in Sulaimani province's Chamchamal district, citing security threats amid ongoing drone and missile attacks on the Kurdistan Region.

"The Company's approach is in line with other international oil companies operating in the region," GKP said, noting that its assets were not impacted and that the latest gross production from the Sheikan field was above 45,000 barrels per day (bpd).

"The Company is closely monitoring the situation and will provide further updates as appropriate," the company added.

Gulf Keystone announced the previous week that it had restored pre-war production levels at its Sheikan oil field, with output exceeding 43,000 bpd, following the resumption of operations last month after production was temporarily suspended earlier this year due to the conflict involving the US, Israel, and Iran.

The Sheikan field in Duhok province is Gulf Keystone's primary producing asset and was temporarily shut down in March after the US and Israel launched a major military operation against Iran, igniting a six-week war before a fragile ceasefire was reached on April 8.

Before the ceasefire, drone strikes targeted oil fields in the Kurdistan Region, resulting in the suspension of operations at several fields and the exit of multiple foreign companies from the region.

The ceasefire ended in early July following a tit-for-tat military exchange between Tehran and Washington in the Strait of Hormuz.