Kurdish peshmerga forces withdrew without a fight after federal government troops and militia entered the city of Kirkuk and seized the provincial governor’s office and key military bases in response to a Kurdish vote for independence last month.
The oil fields accounted for more than 400,000 of the 650,000 barrels per day that the autonomous Kurdish region exported in defiance of Baghdad.
Their loss deals a huge blow to its already dire finances and its dreams of economic self-sufficiency.
On Tuesday morning, Iraqi forces took down the Kurdish flags that had flown over the pumping stations of the Bai Hassan and Havana oil fields and raised the national flag, an AFP photographer said.
Kurdish technicians had halted production and fled on Monday evening before federal government troops and police entered.
The last Kirkuk oil field still in Kurdish hands is the smaller Khurmala field, south of Arbil, which Kurdish forces have held since 2008 and produces around 10,000 barrels per day.
Oil exports — both from Kirkuk and from within the Kurdish autonomous region — via a pipeline through neighbouring Turkey account for a significant share of the autonomous Kurdish government’s revenues.
They have always riled Baghdad which views them as a breach of the constitution under which they are a federal responsibility.
– ‘End of the dream’ –
The autonomous Kurdish region is suffering a crushing economic crisis after Baghdad severed its air links with the outside world and neighbouring Iran closed its border to trade in oil products.
Iraqi President Fuad Masum on Tuesday blamed the independence poll for triggering Baghdad’s operation.
“Holding a referendum on the Kurdistan region’s independence from Iraq stirred grave disagreements between the central government and the government of Kurdistan,” Masum, who is himself a Kurd, said in a televised address.
That “led to federal security forces retaking direct control of Kirkuk,” he said.
Global crude prices rose Tuesday as investors voiced fears of output disruptions.
French geographer and Kurdistan specialist Cyril Roussel said the loss of the oil fields had slashed Kurdish finances by half.
“It spells the end of Kurdistan’s economic self-sufficiency and of the dream of independence,” he said.
Roussel said that without the revenues from Kirkuk oil, the autonomous region would never have embarked on the September 25 poll in which Kurds overwhelmingly backed independence.
“It was only after the annexation of the two Kirkuk fields in July 2014 that Kurdish president Massud Barzani started to talk of independence. Before, he spoke only of autonomy,” Roussel said.
Kirkuk lies outside the autonomous region but is one of a string of historically Kurdish-majority territories that the Kurds aim to control, against the wishes of Baghdad.
Kurdish forces seized many such areas in 2014 when Iraqi army units disintegrated in the face of the jihadists’ lightning advance.
– Yazidi massacre town falls –
But since entering Kirkuk city on Monday, government forces have advanced on those areas one by one.
Market trader Hassan Mohammed, from Sulaimaniyah, said he had “never felt so full of despair”.
“The history of the Kurds in Iraq is full of setbacks, Kirkuk is a new one, a huge one,” the 52-year-old said.
On Tuesday, troops and militia entered the Yazidi Kurdish town of Sinjar after peshmerga forces withdrew without a fight, the Hashed al-Shaabi paramilitary force said.
Sinjar was the site of one of the Islamic State group’s worst atrocities in August 2014, when it killed thousands of Yazidi men and abducted thousands of women and girls as sex slaves.
Tens of thousands of civilians fled in appalling conditions, helping trigger the US intervention against the jihadists.
The Yazidis are Kurdish-speaking but follow their own non-Muslim faith, hated by the Sunni Muslim extremists of IS.
– ‘Betrayal’ –
Kurdish forces captured Sinjar from IS in 2015 and the town’s loss is a symbolic blow for Barzani.
Ten peshmerga fighters were killed as they exchanged artillery fire with the army before it entered Kirkuk on Monday, but otherwise the Iraqi advance has been largely bloodless.
That was helped by a sharp division within Kurdish ranks over last month’s independence poll.
Peshmerga forces loyal to the Patriotic Union of Kurdistan, historic rival of Barzani’s Kurdistan Democratic Party, withdrew under an agreement with Baghdad, officials said.
The KDP accused the PUK of “betrayal”.
But KDP forces also withdrew without a fight, abandoning Sinjar and the two Kirkuk oil fields.
On Tuesday, as it became clear that the feared bloodshed was not going to materialise, hundreds of families from among the tens of thousands of Kurdish residents who had fled Kirkuk city began to return to their homes, security sources said.