Dana Gas suspends production in Kurdistan after drone strike

ERBIL, Kurdistan Region - The UAE-based Dana Gas on Sunday said it has temporarily suspended production in the Kurdistan Region’s major Khor Mor gas field after a drone strike two days prior killed four Yemeni nationals at the site and knocked the majority of the Region’s electricity generation offline. 

A drone strike on Khor Mor gas field in Sulaimani province, operated by Dana Gas, on Friday killed four Yemeni nationals and injured eight other employees working to repair a condensate storage tank damaged by a previous attack. 

“Although there was very minor damage to the facilities, for the safety of all our staff and the facilities, we have temporarily suspended production and instituted specific procedural changes,” Dana Gas said in a disclosure on the Abu Dhabi Securities Exchange (ADX). 

The Emirati company said it is engaged with Baghdad and Erbil “to enhance the security and defense measures to allow the resumption of production at the Khor Mor gas facility,” and voiced support for commitments to bring the perpetrators to justice.

Khor Mor in Sulaimani’s Chamchamal district frequently comes under attack, reportedly by Iran-affiliated Iraqi militias taking advantage of its strategic and economic importance for the Kurdistan Region, leading to major power disruptions across the Region and hindering expansion projects at the site. 

It produces 452 million standard cubic feet of gas per day, according to Dana Gas. The strike shut down some two-thirds of the Region’s electricity generation. 

“We maintain our steadfast commitment to the people of the Kurdistan Region and all of Iraq as well as our stakeholders and look forward to resuming production operations from Khor Mor gas as soon as it is safe to do so,” said Dana Gas.  

The Kurdistan Regional Government (KRG) labeled it as a “terrorist” attack, demanding the federal government to take action to stop these assaults, and Iraqi Prime Minister Mohammed Shia’ al-Sudani later announced that clues have been found that would bring the perpetrators to justice once investigations are complete. 

Kurdish and Iraqi officials, as well as international missions, strongly condemned Friday’s attack. 

In late January, a liquid storage tank in Khor Mor was struck by an explosive drone, causing a halt in gas production and a significant power outage in the Kurdistan Region.

The company warned at the time that attacks on Kbor Mor directly impact the lives of the Kurdistan Region’s citizens. 

Despite the security threats and repeated attacks, Dana Gas said in 2022 that they would be able to meet the Kurdistan Region’s full gas demands in about two years.