Security disruptions to Kurdistan oil and gas production

Oil and gas production in Iraq’s Kurdistan Region has faced significant volatility due to regional security concerns, specifically linked to armed UAV attacks and the conflict between the U.S. and Iran.

In July 2026, Gulf Keystone temporarily halted output at the Shaikan oil field as a precaution. Meanwhile, Dana Gas announced a phased restart of the Kormor gas field in Sulaymaniyah following security guarantees from both the Kurdistan Regional Government and the Iraqi central government. Kurdish Prime Minister Masrur Barzani has requested an air-defence system to mitigate drone threats.

Financial reports for the first half of 2026 indicate that while Gulf Keystone’s adjusted EBITDA rose 26% to $52 million due to higher export prices and lower operating costs, production at the Shaikan field was heavily impacted. The field experienced a prolonged shutdown from late February through June, with output dropping from a 2025 average of 44,100 barrels per day to 14,600 barrels per day in the first half of 2026. Following a brief restart in late June, another precautionary shut-in occurred in mid-July, though production resumed by mid-August.