Kurdish forces order out Iraq oil workers-sources

BAGHDAD (Reuters) - A drilling team exploring in an Iraqi oilfield briefly withdrew this week after being warned off by Kurdish security forces, oil industry sources said on Friday.

Engineers familiar with the incident said it had no impact on production.

But it underlines rivalries between Baghdad and the Kurdish regional government over territory and rights to Iraq's huge oil reserves, which lie mostly in the Kurdish north or the Shi'ite south of the country.

An Iraqi government oil official, who declined to be identified, said members of the Kurdish Peshmerga security force had taken over the Khurmala oil field on Thursday and sent away employees working there.

The field, which produces about 35,000 barrels per day of oil, lies 65 km (40 miles) northwest of Kirkuk in northern Iraq, close to the border of Iraq's largely autonomous Kurdish region.

The Iraqi Oil Ministry quickly took the employees back to the field and they resumed working, the official said. By Friday, Kurdish forces had left the area, he said.

"We consider this an irresponsible act against the Iraqi oil facilities," the official said.

Two engineers working for the Iraq Drilling Co in Kirkuk described a more limited skirmish, saying a crew was exploring in part of the Khurmala field when a Kurdish force arrived.

The Kurdish force told the crew the land was part of the Kurdish regional government's territory and they had no right to explore there, the engineers, who also declined to be named, said.

The force ordered the crew to leave the area, and it did so, they said.

The drilling company immediately contacted the Iraqi Oil Ministry in Baghdad and told them about the incident.

The engineers said the incident had had no effect on production from the field.

The head of Kirkuk provincial council, Rizgar Ali, said he had no knowledge of the incident.

Disputes between the Kurdish region and Baghdad have delayed a federal oil law in Iraq for over a year.

Kirkuk is also a focus of rivalry between ethnic groups, largely because of its oil wealth.

Kurds, a minority in Iraq as a whole, see the city of Kirkuk as their ancient capital and have led a push for a referendum to establish control. Arabs encouraged to move to Kirkuk under Saddam Hussein want it to stay under Baghdad's control.