Production from several IOC-operated fields in Iraqi Kurdistan remains shut-in following last week’s drone strikes, which forced as much as 200,000 b/d offline (MEES, 18 July). An IOC industry source tells MEES that initial assessments do not indicate severe damage to infrastructure, except for Hunt Oil’s Ain Sifni block which was attacked twice on 16 June.
Hunt Oil has yet to confirm the incidents. The firms “are waiting for a few days of calm and to repair minor damages and then restart production,” the source adds. The companies are also assessing whether they can bring back expatriate personnel. “The IOCs could lose their insurance coverage if personnel are hurt and they are found to be careless in protecting their personnel,” the source says. Operations are expected to restart soon, as the firms depend on local sales to generate cash flow. An Iraqi oil ministry delegation visited affected fields over the weekend to assess damage. (CONTINUED - 233 WORDS)