Drone Strike Halts Production at Iraqi Gas Field

The UAE-based natural gas company Dana Gas has halted operations at the Khor Mor gas field in Iraq's Kurdistan Region following a drone attack on April 26th. The strike, deemed a "terror attack" by Dana Gas in a statement to the Abu Dhabi Securities Exchange, targeted a condensate storage tank at the facility. While the company reports minimal damage to the infrastructure, the attack resulted in tragic consequences. Four Yemeni nationals working at the site were killed, and eight contractor employees sustained minor injuries during repairs on the storage tank.

This attack marks a significant disruption to the Kurdistan Region's energy sector. The Khor Mor gas field is a critical source of fuel for power generation, and the drone strike reportedly caused a 2,500-megawatt reduction in electricity output. This has likely resulted in power outages across the region, impacting homes and businesses alike.

The suspension of operations at Khor Mor is not the first time Dana Gas has faced security challenges in the Kurdistan Region. In January 2024, another drone attack targeted a liquid storage tank at the same facility, leading to a temporary halt in production and power disruptions. Despite these setbacks, Dana Gas has previously expressed its commitment to fulfilling the Kurdistan Region's gas demands. In 2022, the company stated its goal of meeting the region's full gas needs within two years.

The recent drone attack raises concerns about the overall security situation in the Kurdistan Region. The perpetrators of the strike remain unidentified, and the motives behind the attack are unclear. Regional authorities, along with the international community, have strongly condemned the violence. The Kurdistan Regional Government is likely to face pressure to enhance security measures and ensure the safety of energy infrastructure in the region.

Dana Gas, in its statement, emphasized its focus on employee safety and the security of its facilities. The company is working with local authorities to implement additional security protocols to prevent future attacks. It remains to be seen how long the suspension of operations at Khor Mor will last. Resuming production will depend on completing necessary repairs, ensuring the safety of personnel, and potentially implementing the new security measures.

The attack on the Khor Mor gas field highlights the complex security challenges facing energy production in the region. It also underscores the potential impact such disruptions can have on the local population's access to electricity. As Dana Gas and Kurdish authorities work towards resuming operations, ensuring long-term security and stability in the region will be crucial.

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