Significant Oil Export Developments by DNO ASA
In a noteworthy development, DNO ASA, a prominent Norwegian oil and gas operator, is gearing up for the anticipated commencement of oil exports through the established Iraq-Türkiye Pipeline. This comes as a result of vital agreements forged between the Federal Government of Iraq, the Kurdistan Regional Government, and a collective of international oil companies. The implications for DNO and its operations are profound, signifying a pivotal moment in their continuing efforts in the region.
Details of Oil Production from Tawke License
DNO has confirmed that they will be facilitating the Kurdistan Regional Government’s quota of oil sales. Their current operational capacity sees an average of 38,000 barrels a day being set aside for export. In addition, a supplementary average of 30,000 barrels per day, produced in collaboration with Genel Energy International Limited, will remain available for local sales under existing agreements. These operations are crucial for DNO as they align with their growth strategy in oil production.
CEO's Insights on Export Strategies
Bijan Mossavar-Rahmani, the Executive Chairman of DNO, expressed enthusiasm regarding the unlocking of oil exports from the Kurdistan Region. “We’re thrilled that the pathway for exporting oil to international markets is now clear,” he remarked. He clarified that although DNO will not directly engage in export activities at this juncture, they will continue to conduct monthly sales to local buyers at competitive rates.
Supporting Export and Market Expansion
Notably, the company’s buyers have secured their own export arrangements, which, according to Mr. Mossavar-Rahmani, is a welcomed initiative. This development not only supports the broader export framework but also solidifies DNO’s presence in the market.
Future Outlook for DNO’s Operations
DNO's strategic agreements with the Federal Government of Iraq and the Kurdistan Regional Government are set to conclude at the end of the year. Initial payments calculated at USD 14 per barrel, post the deduction of transport expenses, are anticipated by mid-December. An evaluation process by a consultant appointed by Baghdad will lead to necessary adjustments based on commercial contracts in 2026.
Ambitious Production Expansion Program
In a bid to bolster its output, DNO has initiated a substantial production expansion program in the Tawke and Peshkabir fields. This follows the damage incurred from recent drone strikes. With plans to drill eight new wells in 2026, DNO is targeting a robust production goal of 100,000 barrels a day. “The success of such an ambitious plan relies on consistent and predictable funding sources,” Mr. Mossavar-Rahmani stated, emphasizing the importance of financial stability in achieving these targets.
Creating Value for Stakeholders
Reflecting on the company's trajectory, he acknowledged that while they may have to forgo immediate profits, the longer-term investments will yield substantial benefits not only for DNO but also for the Iraqi economy as a whole. Creating value for all stakeholders remains a core objective.
About DNO ASA
DNO ASA stands tall as a Norwegian oil and gas operator actively involved in multiple regions, including the Middle East, North Sea, and West Africa. Established in 1971 and listed on the Oslo Stock Exchange, DNO ASA manages a portfolio of onshore and offshore licenses in various stages of exploration, development, and production across several notable regions, including the Kurdistan territory of Iraq and Norway. For further inquiries, the contact details are as follows:
Media Inquiries: media@dno.no
Investor Relations: investor.relations@dno.no
This release is compliant with the disclosure mandates under section 5-12 of the Norwegian Securities Trading Act.
Frequently Asked Questions
What recent developments has DNO ASA reported?
DNO ASA has announced preparations for the commencement of oil exports through the Iraq-Türkiye Pipeline.
How much oil is DNO looking to export daily?
DNO will deliver approximately 38,000 barrels a day from the Tawke license for export.
What is the company's future production target?
DNO aims to achieve a production target of 100,000 barrels per day with plans to drill eight new wells in 2026.
Who is currently managing DNO's operations?
Bijan Mossavar-Rahmani is the Executive Chairman overseeing DNO's operations and strategies.
How can one contact DNO for more information?
For media or investor inquiries, individuals can reach out via email at media@dno.no and investor.relations@dno.no respectively.
