HKN Energy has resumed oil production at the Atrush oil field, marking another important step in the recovery of the Kurdistan Region’s oil industry. The restart forms part of a broader plan that is bringing international energy companies back into operation after a long period of disruption.
The company restarted production, adding momentum to the region’s efforts to restore oil output. As more companies resume operations, Kurdistan’s total production capacity is expected to reach 170,000 barrels per day (bpd)later this week.
Moreover, the return of production is helping rebuild confidence in the region’s energy sector. Oil companies have gradually restarted operations instead of reopening all facilities at once. This phased approach allows operators to safely restore production while improving infrastructure and coordinating with regional authorities.
Several international companies have already resumed production. Norwegian operator DNO restarted activities at the Tawke and Peshkabir fields. Likewise, Gulf Keystone Petroleum has returned to production at the Shaikan field. Meanwhile, U.S.-based Hunt Oil plans to restart operations on July 8, while other foreign companies continue preparing their facilities.
As a result, eight major oil fields will soon return to production. These include Atrush, Tawke, Peshkabir, Khurmala, Shaikan, Sarsang, Erbil, and Bijell-Harir. Together, these fields represent a significant share of the Kurdistan Region’s oil industry.
Previously, eight of the eleven international oil companies operating in Kurdistan had suspended production after crude exports stopped in May 2023. The shutdown disrupted exports through the regional pipeline and caused major financial losses for both the Kurdistan Regional Government and the federal government of Iraq.
Although international pipeline exports have not resumed, companies are increasing production to supply domestic refineries and local markets. This strategy helps maintain oil operations while broader export negotiations continue.
Furthermore, restarting production supports employment, strengthens local businesses, and keeps oil infrastructure operational. Industry officials believe these measures will reduce some of the economic pressure caused by the prolonged export suspension.
The return of HKN Energy to the Atrush field highlights the gradual recovery of Kurdistan’s energy sector. If the remaining operators complete their scheduled restarts, the region will move closer to restoring stable oil production while preparing for the eventual return of international exports.
