DNO Powers on in Kurdistan
July 10 2024 - 1:00AM
UK Regulatory
DNO Powers on in Kurdistan
Oslo, 10 July 2024 – DNO ASA, the Norwegian oil and gas
operator, today celebrated the 20th anniversary of the signing of
its first production sharing contracts in the Kurdistan region of
Iraq. These contracts, signed in mid-2004, marked the start of a
journey that has created a modern oil industry in Kurdistan, helped
transform the local economy and catapulted DNO into the ranks of
the largest European exploration and production companies.
The acreage contracted by the Company included
the highly prospective, and in DNO’s hands, highly productive, area
that today hosts the prolific Tawke and Peshkabir oilfields, the
region’s largest operated by an international oil company.
Production from these fields (Tawke started up in 2007 and
Peshkabir in 2017) averaged above 100,000 barrels of oil per day
(bopd) until pipeline exports from Kurdistan were halted in the
first quarter of 2023 with the shutting down of the pipeline
through Türkiye to the Mediterranean.
Over the past 20 years, these two DNO-operated fields have
together produced more than 450 million barrels, generating USD
17.3 billion in revenues for the Kurdistan Regional Government. In
addition, DNO has created well paid jobs, attractive work
opportunities and a market for local suppliers of oil industry
goods and services.
"We've had feet on the ground in Kurdistan through thick and
thin, ISIS and crisis, in addition to all manner of legal, security
and payment challenges but have remained resilient and resolute,"
said Bijan Mossavar-Rahmani, DNO's Executive Chairman. “All the
while, other companies large and small have come and gone,” he
added. "We remain firmly committed to Kurdistan and our next
challenge is to optimize and monetize our share of production by
tapping international markets.”
Despite the recent shutdown of oil exports and subsequent
scaling back of investments, DNO has maintained gross production of
around 80,000 bopd in 2024, representing a quarter of Kurdistan’s
total output. The Company’s net entitlement share is sold on a cash
and carry basis and transported by traders by road tanker to local
refineries though at a discount to international prices.
DNO holds a 75 percent stake in the Tawke and Peshkabir fields
but under the production sharing contract, the Kurdistan Regional
Government has received the bulk of the oil produced while the
Company and its partner Genel Energy International Limited have
paid all costs.
–
For further information, please contact:
Media: media@dno.no
Investors: investor.relations@dno.no
–
DNO ASA is a Norwegian oil and gas operator active in the Middle
East, the North Sea and West Africa. Founded in 1971 and listed on
the Oslo Stock Exchange, the Company holds stakes in onshore and
offshore licenses at various stages of exploration, development and
production in the Kurdistan region of Iraq, Norway, the United
Kingdom, Côte d'Ivoire, Netherlands and Yemen.
This information is subject to the disclosure requirements
pursuant to §5-12 of the Norwegian Securities Trading Act.
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