Explosion Halts Output At Sarsang As Iraq Signs Oilfield Deal

HKN Energy, operator of the Sarsang field near Erbil, reported the explosion early Tuesday and confirmed all personnel were safe. Firefighters battled the blaze throughout the day, bringing it under near-complete control by evening. The company said the cause of the explosion remains under investigation.

Though no official attribution has been made, social media posts and local outlets speculated that a drone strike may have triggered the blast — underscoring the volatile security environment in the semi-autonomous Kurdish region.

Production at Sarsang has been fully suspended, raising concerns about operational continuity and investor confidence.

In a separate but related development, Iraq’s Oil Ministry announced it had reached a preliminary agreement with HKN Energy to jointly develop the Himreen oilfield. Located in northern Iraq, the field currently produces 20,000 to 25,000 barrels per day (bpd), but the ministry aims to raise that figure to 60,000 bpd under the new plan.

The agreement signals Baghdad’s continued drive to expand oil output despite regional risks. Officials have framed the deal as part of a broader strategy to attract foreign investment and stabilize output amid market volatility.

The dual headlines — a destructive explosion in one field and a major deal in another — illustrate the paradox of Iraq’s energy sector, where opportunity and insecurity persist in parallel.