DNO ASA, the Norwegian oil and gas operator has announced record oil and gas output in 2015 despite the depressed global oil price. The results show that operated production was up 23% last year to 144 200 boe/d while revenues dropped to US$187 million in 2015, down 59% from 2014.
Following the release of its preliminary 2015 fourth quarter and annual results, the company has announced plans to resume investments at its flagship Tawke field in the Kurdistan Region of Iraq, following five consecutive monthly payments for oil exports and a new payment arrangement tied to its contractual entitlements.
DNO's Executive Chairman Bijan Mossavar-Rahmani commented on the report:
"As much of the industry continues to hunker down, DNO's foot is coming off the brake and pressing on the accelerator."
"The export payment arrangement just put in place provides regularity, predictability and transparency, thereby laying the foundation for stepped up investments in Kurdistan," he added.
New investments at Tawke are predicted to reverse natural field decline and boost output by at least 10% by mid-year, the hope is that as additional investments are made the further the output will increase. The company has also announced plans to drill the Peshkabir-2 appraisal well this year. If the operation should prove a success DNO plans to quickly tie back the Peshkabir field to existing infrastructure at Fish Khabur only 10 km away.
Mr. Mossavar-Rahmani said:
"DNO has already pulled away from the pack in Kurdistan in terms of production and exports, currently contributing nearly 60% of export volumes by the international oil companies.
"In addition to the scale and attractive economics of DNO's oil reserves -- unrivaled among our peer group -- we have balance sheet strength to weather the oil price storm and will emerge from this crisis stronger and more profitable," he added. "We are stubbornly resilient."
An operating loss of US$174 million in 2015 has been reported by the company(operating loss of US$243 million in 2014) as a result of lower revenues, restructuring and impairment charges. DNO ended the year with a cash balance of US$238 million, up from US$114 million in 2014.
DNO ASA presents its full-year financial and operating results in Oslo at 10:00 CET on the 18th of March. A live webcast of the presentation as well as the full Fourth Quarter and Full Year 2015 Interim Report will be available on the company website (www.dno.no).Adapted from a press release by Louise Mulhall
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/18032016/dno-reports-record-output-in-2015/