By Rowena Edwards
March 29 (Reuters) - At least three oil licenses in the
semi-autonomous Kurdistan region of northern Iraq are shut in or
running at reduced rates on Wednesday following a halt to the
northern export pipeline, company statements showed, with more
outages on the horizon.
Iraq was forced to halt around 450,000 barrels per day (bpd)
of crude exports, or half a percent of global oil supply, from
the Kurdistan region (KRI) on Saturday through a pipeline that
runs from its northern Kirkuk oil fields to the Turkish port of
Ceyhan.
The stoppage has helped boost oil prices in recent
days back to near $80/bbl.
Turkey stopped pumping Iraqi crude from the pipeline after
Iraq won an arbitration case in which it said Turkey had
violated a joint agreement by allowing the Kurdistan Regional
Government (KRG) to export oil to Ceyhan without Baghdad's
consent.
Oil firms operating in the KRI are being forced to halt
output or move production into storage, which many say will
reach capacity within days, as talks drag between Turkey,
Baghdad and the KRG to resume exports.
Norwegian oil firm DNO said on Wednesday it had
begun shutting down production at its Tawke and Peshkabir
fields, where production averaged 107,000 barrels per day (bpd)
last year. This represents a quarter of total Kurdish region
exports, DNO said.
Genel Energy , a partner in the fields, said:
"Peshkabir production was halted last night and plans drawn up
to conduct deferred maintenance. Tawke production shutdown has
started but will take an additional day or so."
Canada-based Forza Petroleum , formerly Oryx
Petroleum Corp, was forced to shut in production earlier this
week from the 14,500 bpd Hawler license, which produced an
average 13,700 bpd in January and February.
Genel Energy's remaining assets in KRI continue to flow into
storage, the firm said. Production from its Sarta field can flow
into storage until the end of the week, while tanks can hold
production from Taq Taq until around April 21, a company
spokesperson said on Wednesday. The fields produced a respective
4,710 bpd and 4,490 bpd last year.
Gulf Keystone has reduced production at the Shaikan
oil field, which previously produced around 55,000 bpd, and said
on Monday it would suspend production after a few days.
Dallas-based HKN Energy, which operates the Sarsang block,
said on Monday it would shut in operations "within a week if no
resolution is reached" as its storage facilities approach
capacity. The block produced 43,048 bpd in the fourth quarter of
last year.
(Reporting by Rowena Edwards; Editing by David Holmes)
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