Many Middle Eastern countries stopped oil and gas exploitation

On March 2, gas giant QatarEnergy said it would stop producing products related to liquefied natural gas (LNG). Previously, on March 1, the Qatari government announced that a facility belonging to QatarEnergy was attacked by two Iranian drones. Officials are assessing the damage.

Qatar’s LNG output is equivalent to 20% of global supply. This country is also the world’s second largest exporter of LNG after the US, playing a big role in balancing the needs of European and Asian markets. Asian visitors currently account for 82% of QatarEnergy’s total customers.

In the Kurdish autonomous region in Iraq, companies such as DNO, Gulf Keystone Petroleum, Dana Gas and HKN Energy have temporarily stopped exploiting oil fields, although no damage has been recorded. Last month, the region exported about 200,000 barrels of oil per day via pipeline to the Turkish port of Ceyhan.

Brent crude oil price on March 2 at one point increased by 13% to over 82 USD per barrel – the highest since January 2025. Fighting lasted for the third day, causing shipping activities through the Strait of Hormuz to almost paralyze. About 20% of global oil supply passes through this route.

In Israel, the government asked Chevron to temporarily close the giant Leviathan gas field. A Chevron spokesman said its facilities are safe. Energean also stopped operating mining vessels serving smaller gas fields.

In Iran, multiple explosions were recorded on February 28 at Kharg Island – where 90% of Iran’s oil exports are processed. However, the extent of damage to the facilities here is currently unknown.

Iran is the third largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC), providing about 4.5% of global supply. The country’s output is about 3.3 million barrels of crude oil per day, along with 1.3 million barrels of gas condensate and other liquid fuels.

March 2, Reuters Also citing close sources, Saudi Arabia has closed the country’s largest oil refinery – Ras Tanura (part of state-owned oil and gas corporation Saudi Aramco) after being attacked by a drone. This facility has a capacity of 550,000 barrels a day, is located in an energy complex on the coast of Saudi Arabia and is also an important crude oil export port for the country.

On Al Arabiya channel, a spokesman for the Saudi Ministry of Defense said two drones were intercepted here. The debris caused a small fire, but there were no casualties.

However, the closure of Ras Tanura could increase supply concerns as shipping through the Strait of Hormuz has almost stagnated. “The attack on the Ras Tanura plant marks a significant escalation, as Gulf energy infrastructure is now a target for Iran,” concluded Torbjorn Soltvedt – analyst at consulting firm Verisk Maplecroft.