Norway's DNO ramps up Kurdistan oil production

Genel Energy

08/02/2024 08:29

OSLO, Feb 8 (Reuters) - DNO's  DNO.OL  oil production in
the semi-autonomous Kurdistan region of Iraq has "largerly
recovered" from the key export pipeline shutdown almost a year
ago, but is now sold locally at a discount, the Norwegian
company said on Thursday.
    Crude oil flows of around 450,000 barrels per day (bpd) from
northern Iraq to Turkey were halted last March following an
International Chamber of Commerce (ICC) arbitration ruling. It
remains unclear when the exports could restart.
    "At year-end, gross production from the DNO-operated Tawke
license had largely recovered from the March 2023 export
pipeline shutdown and was averaging 80,000 barrels of oil
equivalent per day," the company said in statement.
    DNO produced around 95,000 boepd from the Tawke and
Peshkabir fields in the Tawke licence before the pipeline's
shutown. It was down to some 35,000 boed in the third-quarter of
2023.
    The company has managed to increase production by selling
more oil to the local market, with oil transported to customers
by road tankers. 
    DNO said it was selling oil at prices in the low-to-mid $30s
per barrels, but with operational spending also down due to a
halt in drilling, the sales generates some $10 million per month
in free cash to the company. 
    "Surely no one is pleased to leave significant money on the
table with every barrel sold," said DNO's Executive Chairman
Bijan Mossavar-Rahmani. 
    DNO said it expected gross production at the Tawke license
to continue to average 80,000 boed. 
    The company holds a 75% stake the Tawke license, while its
partner Genel Energy  GENL.L  has the remaining 25% stake.

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