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DNO releases operations update

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Oilfield Technology,

Norwegian oil and gas operator, DNO ASA, has recently announced that whilst the Kirkuk-Ceyhan pipeline, in Turkey, underwent a week’s shut down production from its Tawke field, in the Kurdistan region of Iraq, continued without interruption. This is due to its ability to redirect volumes from exports to local sales.

Production at Tawke in the third quarter has, to date, averaged 157 000 bpd. Of this total, 134 000 bpd of oil was transferred to the Kurdistan regional government for export and 20 000 bpd of oil was sold by DNO in the local market.

In 2Q15, overall field output was up nearly 50% compared to the first quarter, with 118 000 bpd of oil of Tawke production was transferred to the Kurdistan government at Fish Khabur for export and 31 000 bpd of oil sold by DNO into the local market.

DSOs future in the Kurdistan region of Iraq

Discussions between DSO and Kurdistan's Ministry of Natural Resources are ongoing with regards to the split between export deliveries and local sales, payments for prior and ongoing exports and revenue allocation covering local sales which are paid for directly by the buyers.

Other production rates for DNO ASA

In Oman, 2Q15 production averaged 9000 boe at the offshore Block 8, down from over 11 000 boe in 1Q15 due to the shutting in of the West Bukha-5 well. Furthermore, in Yemen, production from Block 32 and Block 43 remains suspended following declaration of force majeure and evacuation of expatriate staff in the wake of escalating hostilities.

In the interim, in line with other operators, DNO has cut new capital investments and is considering further reductions in operating costs.

Adapted from press release by David Bizley

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