Taqa freezes Kurdish operations as violence grows

Taqa joins oil majors in halting work in Kurdistan region of Iraq as US bombs Islamic militants.

Taqa's drilling rig in the Kurdistan Region of Iraq. Courtesy Taqa

The Abu Dhabi National Energy Company, known as Taqa, yesterday said that it had suspended operations at its oil development project in the autonomous Kurdistan region of Iraq, joining companies such as ExxonMobil and Canada’s Oryx Petroleum in halting or reducing work there as Islamic militants encroached on the region.

“As a result of recent developments and escalating instability around the Kurdistan Region of Iraq, Taqa has suspended operations at the Atrush Block and, as a precautionary measure, significantly reduced staffing levels,” the Abu Dhabi-based company said.

“Taqa continues to closely monitor the security situation with its Atrush partners and the Kurdistan Regional Government. The safety and security of the company’s staff and contractors are of paramount importance.”

US jets struck Islamic State positions in northern Iraq on Friday, a potential turning point in a two-month crisis that Washington said was threatening to result in genocide and to expose US assets. The air strikes, the first US military intervention in Iraq since the its withdrawal in 2011, were ordered by the president Barack Obama in response to massive gains by the extremist militants, Agence France-Presse reported.

The Kurdish natural resources ministry said that oil production had not been affected even as militants approached the region’s capital. The International Energy Agency estimates that oilfields in the region produced roughly 360,000 barrels per day in June.

Taqa last year posted its first annual loss following writedowns of US$884 million in Canada. Shortly after the announcement of the loss, the company’s chief executive, Carl Sheldon, who had held the role since 2011, stepped down, with his duties passing to Edward LaFehr.

Mr LaFehr said in April that the loss would not curtail the company’s plans to make future investments or service its debt.

The company said it remains committed to the development of the Atrush Block and expects to start production next year.

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