Iraq oil field stops production due to Israel-Iran conflict

03 March 2026
Gulf Keystone Petroleum said it had taken measures to protect staff

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The Shaikan field in northern Iraq’s semi-autonomous Kurdistan region has stopped production due to security concerns related to the US and Israel’s conflict with Iran.

The field is operated by London-listed Gulf Keystone Petroleum, which has said in a statement that it had “temporarily shut-in production operations and has taken measures to protect staff in light of the developing regional security environment”.

The company also said that it was closely monitoring the situation and would provide updates as appropriate.

Shaikan is one of Iraqi Kurdistan’s largest producing fields and produced more than 41,500 barrels a day in 2025.

The production stoppage at Shaikan comes days after gas production was halted at Iraqi Kurdistan’s Khor Mor field on 28 February.

UAE-based Dana Gas stopped supplying power plants from the field due to the “abnormal situation and war taking place in the area”, according to a joint statement from the Kurdistan region’s natural resources and electricity ministries.

The gas halt is expected to cut electricity generation capacity by 2,500-3,000MW, with authorities seeking alternative supply to limit the shortfall, the ministries said.

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