Norwegian DNO resumes partial oil production in Iraqi Kurdistan
Shafaq News/ DNO ASA, the Norwegian oil and gas operator, disclosed on Thursday that it had commenced partial oil production last month from the Tawke field in the Kurdistan Region of Iraq.
The produced oil has been channeled to the local market at a reduced price, a measure necessitated by the ongoing closure of a significant export pipeline.
The company announced that its primary asset, the Tawke field, is presently yielding an output of 40,000 barrels of oil per day. However, the neighboring Peshkabir field remains inactive.
DNO holds a 75 percent operated interest in the Tawke license, with partner Genel Energy International Limited holding the remaining 25 percent.
DNO's Executive Chairman, Bijan Mossavar-Rahmani, acknowledged the current challenges, stating, "While there is no certainty regarding the reopening of the export pipeline, we anticipate an increasing reliance on truck transport for our Tawke field shipments under a pay-and-load framework."
The extended closure of the export pipeline has impacted DNO's financial performance. The company reported operating losses totaling $15 million for the second quarter of this year, starkly contrasting the $81 million in profits recorded during the same period last year. This challenging landscape has also contributed to a decline in DNO's net production, reaching its lowest level in 13 years.
DNO had temporarily suspended operations in the Kurdistan Region when Turkey enforced the closure of an essential export pipeline in March. The decision followed a favorable arbitration verdict for Baghdad in a case in Paris, which was heard at the International Chamber of Commerce.
The partial resumption of production from the Tawki field signals a strategic maneuver to navigate the current constraints and maintain a degree of local oil supply amid regional uncertainties.
