Black smoke rises from a roaring fire at Sarsang oilfield, following a drone attack in Dohuk, Iraq. Reuters
Black smoke rises from a roaring fire at Sarsang oilfield, following a drone attack in Dohuk, Iraq. Reuters
Black smoke rises from a roaring fire at Sarsang oilfield, following a drone attack in Dohuk, Iraq. Reuters
Black smoke rises from a roaring fire at Sarsang oilfield, following a drone attack in Dohuk, Iraq. Reuters

Oilfields in Iraq's Kurdish region come under renewed drone attack


Sinan Mahmoud
  • English
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At least four explosive-laden drones attacked oilfields in the semi-autonomous Kurdish region in northern Iraq on Wednesday morning, according to the region's counter-terrorism service.

The three oilfields are in Dohuk province, it said. They are the Tawke and Peshkabir oilfields operated by Norway’s DNO company, and Ain Sifni oilfield operated by US-based Hunt Oil company.

No casualties were reported, but the attacks caused damage, the counter-terrorism service added.

DNO said it had temporarily suspended production at the oilfields. "The damage assessment is under way and the company expects to restart production once the assessment is completed," it said in a statement.

Over the past two days, three other drones have slammed into two oilfields in the region. Two of the drones attacked the Khurmala oilfield on Monday night in the regional capital, Erbil, and another drone struck Sarsang oilfield in Dohuk.

No group has claimed responsibility. The attacks are part of an escalation in a shadowy campaign targeting the Kurdish region's energy infrastructure.

Smoke rises above an oilfield following the drone attack on the outskirts of Zakho city in the Kurdistan Region of Iraq on Wednesday. AFP
Smoke rises above an oilfield following the drone attack on the outskirts of Zakho city in the Kurdistan Region of Iraq on Wednesday. AFP

Later on Wednesday, Apikur, a group of eight oil firms operating in Iraqi Kurdistan, said that a majority of its members, including those not targeted, have suspended production.

"The operators are assessing damage to production and other field facilities," Apikur said in a statement, without elaborating on the production cut. According to local officials, the region's total production was around 285,000 barrels per day.

It called on the federal government and Kurdistan authorities to "take additional measures to ensure the safety and security of our staff and facilities".

The regional Natural Resources Ministry said the latest attacks caused "significant damage" and condemned them as acts of "terrorism". Baghdad has promised an investigation.

Politician Khamis Al Khanjar described the bombings as "terrorist attacks that pose a dangerous threat to the country's stability and security".

Mr Al Khanjar blamed "uncontrolled militias that do not want the country to move towards complete political, security, social and economic stability".

He echoed the stance of the Kurdistan Region's authorities, who early this month blamed militias linked to the Popular Mobilisation Forces, a coalition of pro-Iran former paramilitary groups now integrated into Iraq's armed forces. Baghdad has rejected this accusation.

Iran and its proxies in Iraq have long accused Iraqi Kurds of hosting a base in Kurdistan for Israel's Mossad intelligence service. They previously launched several attacks on Erbil, including ballistic missiles fired by Tehran.

Together with opposition groups inside Kurdistan, Baghdad has also accused the region of smuggling crude oil through Iran and Turkey instead of handing it over to the federal government as stipulated in a 2023 ruling issued by the Federal Supreme Court.

Since then, both sides have failed to reach an agreement to hand over all oil industry and oil exports to Baghdad. Tension escalated in late May when Baghdad halted all budget transfers to Kurdistan, including the salaries of public employees, saying the Kurds had already received more than their 12.67 per cent share of the 2025 federal budget, then had failed to deliver their agreed share of oil to the national supply.

The Kurdistan Democratic Party, one of the two major ruling parties in Kurdistan, has threatened to withdraw from the national political process if Baghdad does not release the salaries. Its rival the Patriotic Union of Kurdistan, which is aligned with Baghdad and Iran-backed armed factions and political parties, has rejected this move.

The attacked oil fields are crucial to the region's independent exports. The attacks could be an attempt to stop the flow of crude oil and to pressure Kurdistan amid negotiations to resume exports through Baghdad.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: July 16, 2025, 7:10 PM