DNO’s oil production in Iraqi Kurdistan increased
Workers at Tawke oil field in Iraqi Kurdistan. Photo: AFP/Getty Images
Baghdad (IraqiNews.com) – The Norwegian company DNO said on Thursday that its oil production in Iraqi Kurdistan has mostly returned after the impact of the closure of the main export pipeline nearly a year ago.
The company explained that its production is now sold locally at a discounted price.
Crude oil flows of about 450,000 barrels per day from northern Iraq to Turkey stopped last March after the International Chamber of Commerce (ICC) issued a ruling in an arbitration case.
It is yet unknown when exports can start up again.
The Norwegian company said in a statement that the total production from the DNO-operated Tawke oil field had mostly resumed after the export pipeline was shut down in March 2023, indicating that its production reached 80,000 barrels of oil equivalent (BOE).
DNO’s oil production fell to about 35,000 barrels in the third quarter of 2023.
The company managed to increase production by selling more oil to the local market.
According to DNO, it is selling oil for between $30 and $35 per barrel, but because drilling activity has stopped, operational costs have also decreased, resulting in monthly revenues of around $10 million.
DNO owns a 75 percent stake in the Tawke field, while its partner Genel Energy owns 25 percent.