DNO ASA Expresses Enthusiasm for Resumption of Oil Exports
DNO ASA, the prominent Norwegian oil and gas operator, has expressed its eagerness regarding the resumption of crude oil exports through the Iraq-Türkiye Pipeline. Recent reports indicate successful agreements among the Federal Government of Iraq, the Kurdistan Regional Government, and various international oil firms, which could pave the way for exporting Kurdistan-produced oil once again.
Importance of Secured Agreements
In its ongoing commitment to restore exports, DNO emphasizes the necessity of agreements that guarantee payment security. This is especially crucial for both previous outstanding amounts and prospective exports based on the legal and economic terms present in their production sharing contracts with Kurdistan.
The Unique Position of DNO
Executive Chairman Bijan Mossavar-Rahmani has outlined how DNO’s circumstances differ from those of other international oil companies. As the largest producer of oil in the region, the arrears due to DNO from the Kurdistan Regional Government significantly exceed those owed to other companies. This dynamic not only elevates DNO's exposure to potential payment risks but also prompts a need for swift resolution.
Proposed Solutions for Payment Issues
To tackle payment concerns, DNO has approached the Erbil authorities with suggestions aimed at facilitating swift agreement on this matter. As Mr. Mossavar-Rahmani mentioned, these solutions are designed to be “easy fixes” that could enhance the financial security of DNO in Kurdistan’s oil sector.
Investment in Field Repairs
The company, along with its partner Genel Energy International Limited, is ramping up investments necessary for repairs to their Tawke and Peshkabir fields, which recently faced damage due to drone attacks. These repairs are vital as they prepare for future growth, with a drilling plan for eight new wells in Tawke projected for the coming year, targeting an impressive gross operated production of up to 100,000 barrels per day.
Current Operations and Market Activity
Currently, DNO’s net entitlement share of produced oil is being sold on a cash and carry basis. Transported by road tankers, these sales reach local refineries at prices hovering in the low USD 30s per barrel. This operational model highlights the firm’s adaptability in the local market during these turbulent times.
For further information, please reach out via email:
Media inquiries: media@dno.no
Investor relations: investor.relations@dno.no
DNO ASA Overview
DNO ASA is an established Norwegian oil and gas operator, actively involved across the Middle East, North Sea, and West Africa. Founded in 1971 and publicly traded on the Oslo Stock Exchange, the company maintains stakes in both onshore and offshore licenses at various progression stages of exploration, development, and production, particularly in the vibrant Kurdistan region of Iraq, as well as locations in Norway, the UK, Côte d'Ivoire, the Netherlands, and Yemen. For more detailed information about DNO ASA, please refer to their website.
Frequently Asked Questions
What agreements have been reached regarding oil exports?
Agreements have been established between the Iraqi Federal Government, the Kurdistan Regional Government, and several international oil companies to renew oil exports through the Iraq-Türkiye Pipeline.
Why is payment security important for DNO ASA?
Payment security is crucial for DNO to ensure that both past dues and future oil sales are financially secure, allowing for smoother operations and planning.
What is the significance of DNO’s larger exposure?
As the leading oil producer in the region, DNO faces significant arrears from the KRG, positioning them uniquely with higher risks but also potential for greater gains upon resolution.
What drilling plans does DNO have for the future?
DNO plans to drill eight new wells in the Tawke license area in 2026, aiming for a production capacity of up to 100,000 barrels per day.
How is DNO currently managing oil sales?
DNO’s oil is being sold on a cash and carry basis, being transported to local refineries through road tankers at prices in the low USD 30s per barrel.
