8th Aug 2014 07:00
LONDON (Alliance News) - Oil and gas explorer and producer Afren PLC Friday said it had decided to temporarily suspend operations at the Barda Rash filed in the Kurdistan region of Iraq due to the heightened security tensions in the area, although it doesn't expect the move to have a significant impact on its cashflow.
In a statement, the company said it is implementing a phased withdrawal of non-essential field personnel from the Barda Rash field, although its other operations in Kurdistan are unaffected.
"Afren will continue to closely monitor events on the ground in consultation with our security team and the relevant authorities. It is expected that we will return to field operations as soon as it is prudent to do so," it said.
US President Barack Obama late Thursday authorized airstrikes against Islamist militants that have taken over swathes of territory in Iraq and Syria, and said it could act to prevent a possible "act of genocide" against displaced minority communities, although he ruled out the use of any US ground troops.
Islamic State militants have taken control of several Christian towns in northern Iraq, prompting up to 100,000 people to flee for Kurdish-held territory.
The jihadists seized Qaraqoush, Iraq's biggest Christian town, and nearby villages, following the retreat of Kurdish troops who had come from the autonomous region of Kurdistan and protected the area for the past two months, residents said.
Kurdish forces, known as the Peshmerga, have been fighting the Islamic State advance in the north for months.
Afren has a 60% working interest in the Barda Rash field in Kurdistan, as well as a 20% working interest in the nearby Ain Sifni field.
The news is the latest recent setback for the company. Its shares have plummeted since it suspended its chief executive and chief operating officer on July 31, pending an investigation into alleged evidence of unauthorised payments that were potentially for the benefit of the executives.
That led ratings agency Standard & Poor to downgrade the company on Thursday, over fears the investigation into alleged unauthorised payments could cause banks? lending to dry up.
By Steve McGrath; [email protected]; @stevemcgrath1
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