UK independent explorer Afren has temporarily suspended its operations at the Barda Rash field in Iraqi Kurdistan on safety grounds.
The asset, 55 kilometres north west of Erbil – a key oil hub – is the firm’s only producing field in the region. It recorded an output of 785 barrels of oil per day in the first quarter of the year.
It is also the first field to shut in Kurdistan amid growing threats from Islamic State militants who are said to have advanced closer to the oil-rich region of Iraq.
“Working with our local security advisors, Afren is implementing a phased withdrawal of non-essential field personnel from the Barda Rash field,” the company said in a statement.
All other Afren operations remain unchanged and the suspension is not expected to have a “significant” impact of the company’s cashflow, it added.
But shares of energy companies operating in Kurdistan plunged on Thursday on the news that militants were advancing towards Erbil.
Norwegian DNO recorded a 24% slump in shares, Gulf Keystone Petroleum was down 13% at their lowest point, while Genel shares were down more than 10%.
The companies said they began withdrawing non-essential personnel from non-producing assets, but maintained output from key fields.
“We remain confident in the Kurdistan Regional Government’s ability to maintain the territorial integrity of both the KRI and oil infrastructure,” Genel said in a statement.
