HKN Energy said in a statement that "an explosion occurred earlier today at approximately 7:00 AM local time (0400 GMT) at one of its production facilities in the Sarang field."

It added that "operations at the affected facility have been suspended until the site is secured".

The source of the explosion, which did not cause any casualties, was not immediately clear.

In the past few weeks, there has seen a spate of drone and rocket attacks mostly affecting Kurdistan.

Long plagued by conflict, Iraq has frequently experienced such attacks, often linked to regional proxy struggles.

The explosion in Sarang field occurred a day after three explosive-laden drone attacks were reported in Kurdistan, with one drone shot down near Arbil airport and another two hitting the Khurmala oil field causing material damage.

There has been no claim of responsibility for those attacks.

But, on July 3, the Kurdistan authorities said a drone was downed near Arbil airport, blaming the Hashed al-Shaabi -- a coalition of pro-Iran former paramilitaries now integrated into the regular armed forces.

The federal government in Baghdad rejected the accusation.

The latest attacks come at a time of heightened tension between Baghdad and Arbil over oil exports, with a major pipeline through Turkey shut since 2023 over legal disputes and technical issues.

In May, Iraq's federal authorities filed a complaint against the autonomous Kurdistan region for signing gas contracts with two US companies, including HKN Energy.