Iraq’s Atrush and Sarsang oil fields stop production due to Iran conflict

4 March 2026

Register for MEED’s 14-day trial access 

Production has stopped at the Atrush and Sarsang blocks in the Kurdistan Region of Iraq, and output has been slashed at key fields in the south of the country.

Canada-based ShaMaran Petroleum Corporation, which holds stakes in Atrush and Sarsang, said that production had stopped at both fields as a precautionary measure due to “the deterioration in the regional security environment” related to the US and Israel’s conflict with Iran.

ShaMaran holds a 50% working interest in the Atrush Block and an 18% working interest in the Sarsang Block.

Erbil-headquartered HKN Energy is also a partner in both fields.

Prior to the latest shutdown, in the company’s most recent quarterly report, it said that Atrush had produced an average of 29,400 barrels a day (b/d) over the three-month period, and Sarsang produced 18,200 b/d.

Due to the field closures in Iraqi Kurdistan, it has been reported that exports to the Turkish port of Ceyhan via the Iraq-Turkiye pipeline have fallen to zero while all of the crude produced in the region is used domestically.

Iraq’s Rumaila field, in the south of the country, is also being severely impacted by the ongoing conflict.

On 3 March, the decision was taken to completely stop production at the South Rumaila field, after Iran’s Islamic Revolutionary Guard Corps declared the Strait of Hormuz closed.

The Rumaila oil field, which is made up of North Rumaila and South Rumaila, is the second-biggest oil field in the world.

The oil field normally has the capacity to produce around 1.2 million b/d, but has cut production by at least 700,000 b/d due to overloaded storage.

Also in the south of the country, there have been cuts to production at the West Qurna-2 and Maysan fields.

Several other Iraqi oil and gas fields have shut down recently amid the US and Israel’s ongoing war with Iran.

The Shaikan field in northern Iraq’s semi-autonomous Kurdistan region has stopped production due to security concerns.

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”.

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 came 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.

https://image.digitalinsightresearch.in/uploads/NewsArticle/15853790/main.jpg
Wil Crisp
Related Articles
  • Qatar seeks to establish new industrial area in Mesaieed

    16 July 2026

    Qatar’s Ministry of Commerce & Industry and state enterprise QatarEnergy have signed an agreement to cooperate on evaluating and allocating hydrocarbon-derived resources to support the establishment of a new medium industries area in Mesaieed Industrial City.

    Under the terms of reference signed between the parties, QatarEnergy will implement a governance mechanism for the allocation of hydrocarbon-derived feedstock to qualifying industrial investment opportunities for the proposed new medium industries area in Mesaieed Industrial City.

    “The agreed terms of reference stipulate the evaluation and allocation of hydrocarbon-derived resources, natural gas, power and related natural resources to downstream derivative industrial investment opportunities,” QatarEnergy said in a statement.

    “It will also ensure the optimal use of national resources and enhance the added value of the industrial sector by establishing a joint governance framework to evaluate and allocate resources required by qualified industrial investment opportunities,” it added.

    QatarEnergy currently operates crude oil refining facilities, including natural gas liquids units, as well as petrochemical production complexes and other units in the hydrocarbon value chain, in Mesaieed Industrial City, situated around 45 kilometres south of Doha.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17688383/main.jpg
    Indrajit Sen
  • Bahri signs deal for two offshore vessels with Dubai shipyard

    16 July 2026

    Bahri Logistics, a division of Saudi Arabia’s national shipping company Bahri, has placed an order for the construction of two advanced offshore support vessels with Dubai-based Grandweld Shipyard.

    Grandweld will custom-build the two vessels to meet Bahri’s operational requirements for offshore activities at Ras Tanura port in Saudi Arabia, one of the world’s busiest oil and gas bunkering and export hubs.

    The vessels will be built at Grandweld’s shipyard in Dubai Maritime City and are expected to be delivered in August, following a 12-month building period.

    The vessels will feature the latest navigation and safety technologies. They are designed to perform multiple offshore support functions, including vessel clearance, crew changes and emergency response, while adhering to international maritime standards.

    The newbuild agreement with Grandweld aligns with Bahri’s broader strategy “to modernise its fleet, enhance technical capabilities, and adopt more energy-efficient and environmentally responsible designs”.

    “Through continued investments in technology, infrastructure and fleet diversification, Bahri Logistics aims to deliver smarter, more sustainable logistics solutions that contribute to the Saudi Green Initiative and the kingdom’s long-term economic diversification goals,” the Saudi Stock Exchange-listed (Tadawul) company said in a statement.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17687877/main.jpg
    Indrajit Sen
  • Egypt intensifies efforts to create petroleum stockpile

    16 July 2026

    Egypt is intensifying its efforts to secure and maintain a sufficient strategic stockpile of petroleum products, according to a statement from the country’s cabinet and its Ministry of Petroleum & Mineral Resources.

    The Egyptian government is closely monitoring regional developments and their potential repercussions on the energy sector, according to the statement.

    Egyptian Prime Minister Mostafa Madbouly said that the government is implementing flexible plans and looking at alternative scenarios so that it can respond quickly to emergencies while ensuring the uninterrupted supply of fuel to citizens and key industrial sectors.

    Egypt is intensifying its efforts to build up strategic stockpiles amid heightened uncertainty about future global oil and gas supplies.

    Since the US and Israel attacked Iran on 28 February, there has been significant disruption to shipping through the Strait of Hormuz, which is a key transit route for oil and gas exports from the Middle East.

    On top of this, the regional war has involved multiple direct attacks on refineries in the GCC, increasing uncertainty about the future availability of refined products.

    Aside from Motafa Madbouly, the meeting was also attended by Hassan Abdullah, who is governor of the Central Bank, Minister of Finance Ahmed Koguk and Minister of Petroleum and Minerals Karim Badawi.

    During the meeting, Badawi gave a presentation on the available quantities of different petroleum products and explained the details of the procedures currently being implemented to increase the strategic stock of petroleum products.

    A review of the coordination framework and joint work between the Ministry of Finance and the Central Bank also took place during the meeting.

    This was in order to ensure the management of financial tools needed to strengthen the country’s strategic inventory, according to the statement.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17685719/main.jpg
    Wil Crisp
  • Tunisia orders $86m of trainsets from Chinese supplier

    16 July 2026

    Tunisian public transport operator Transtu has finalised an $86m agreement with China’s CRRC Nanjing Puzhen.

    CRRC will supply 18 new electric trainsets for the capital’s northern suburban rail network, which links Tunis to La Goulette and La Marsa.

    Each new trainset will be air-conditioned and capable of carrying up to 400 passengers, including 90 seated riders, with a top speed of 100 km/h. Once operational, the trains are expected to run at six-minute intervals during rush hour and every 12 minutes during off-peak hours.

    The deal forms part of a broader fleet renewal effort by Transtu, which has struggled in recent years with operational setbacks that have taken a toll on the quality of public transport across Greater Tunis.

    The acquisition is designed to boost capacity on the heavily used line as ridership continues to grow, while also enhancing safety standards and overall service quality.

    Funding for the project comes jointly from the European Bank for Reconstruction & Development and the European Investment Bank.

    Beyond the trainsets, the contract includes five years of maintenance coverage, a supply of spare parts and maintenance equipment, and an underfloor wheel lathe aimed at improving long-term fleet reliability.

    This latest investment fits into Tunisia’s larger railway modernisation strategy, under which the government plans to invest $12bn by 2040 to expand and upgrade the country’s rail infrastructure.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17683957/main.jpg
    Yasir Iqbal
  • PIF developer tenders 365-metre Mecca residential tower

    16 July 2026

     

    Rua Al-Haram Al-Makki has tendered the main construction package for the Ajyad residential tower, a 365-metre high-rise development in Mecca’s central area, close to the grand mosque.

    The bid submission deadline is 30 September. 

    Rua Al-Haram Al-Makki Company was established in October 2017 and is a wholly owned subsidiary of Saudi Arabia’s Public Investment Fund.

    The project team includes US-based Marriott International as residential operator, Hanmi Global Saudi as project management consultant, Saudi Diyar Consultants as construction supervision consultant, and PLP Architecture as lead design consultant and construction-stage design guardian.

    The tower rises 84 floors with four basement levels. It comprises a total of 212 units, including 82 three-bedroom apartments, 85 four-bedroom units, 29 penthouses and 16 duplex villas.

    The scheme has a gross floor area of 209,231 square metres (sq m) and a built-up area of 242,976 sq m.

    The site is currently being cleared by a demolition contractor, with the existing mat foundation and retaining walls to be handed over to the main contractor, who will build the new superstructure on the retained raft.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17683664/main.jpg
    Yasir Iqbal