DNO scraps output guidance amid Kurdistan export uncertainty (updated)

Genel Energy

11/05/2023 06:36

(Adds details, background)
       OSLO, May 11 (Reuters) - Norwegian oil firm DNO  DNO.OL 
scrapped on Thursday its guidance for output in Iraq's Kurdistan
region following a halt in exports since March that forced the
company to shut production.
    Turkey stopped pumping about 450,000 barrels per day (bpd)
of Iraqi crude from a pipeline from the Fish-Khabur border area
to its Ceyhan port on March 25 after Iraq won an arbitration
case at the Paris-based International Chamber of Commerce (ICC).
   
        Four days later, DNO 
    announced a shutdown
     of oil production from its Tawke and Peshkabir fields,
which produced 107,000 bpd gross in 2022.
  
    "Until export restarts and regularity of payment for past
and ongoing oil sales is established, DNO cannot provide any
projection of full-year Kurdistan production," the company said
in a statement on Thursday.
    On April 18, the company said it expected gross production
in Kurdistan to be below a previous projection of 100,000 bpd
after reporting first quarter output at 94,720 bpd.
        DNO holds a 75% stake in the Tawke and Peshkabir fields,
while its partner Genel Energy  GENL.L  has 25%.
        Baghdad and the Kurdistan Regional Government (KRG)
signed 
    a temporary agreement
     on April 4 to restart oil exports to Turkey, but the two
still need to iron out several aspects of the deal.
  

 (Reporting by Nerijus Adomaitis, editing by Terje Solsvik)
 ((nerijus.adomaitis@thomsonreuters.com; +47 9027 6699; Reuters
Messaging: nerijus.adomaitis.thomsonreuters@reuters.net))