“DNO” announces the recovery of oil production in The Kurdistan Region of Iraq

The Norwegian company “DNO” said on Thursday that its oil production in the Kurdistan region of Iraq has largely recovered after the closure of the main export pipeline almost a year ago, but it is now being sold locally at a reduced price.

The flow of approximately 450,000 barrels per day of crude oil from Kurdistan region to Turkey came to a halt in March, following a ruling by the International Chamber of Commerce in an arbitration case. It is still unclear when the exports can be resumed.

The company said in a statement:

“By the end of the year, the total production from the Tuwok field, which is managed by DNO, greatly recovered after the closure of the export pipeline in March 2023, reaching an average of 80,000 barrels of oil equivalent per day.”

The company produced approximately 95,000 barrels of oil equivalent per day from the Taouaki and Pishkibir fields in the Taouaki concession before the pipeline was shut down. This decreased to around 35,000 barrels in the third quarter of 2023.

The company was able to increase its production by selling more oil to the local market, as the oil is transferred to customers through land tankers.
DEA said it was selling oil at prices ranging from $30 to $35 per barrel, but with the decrease in operational expenses due to drilling activities being halted, the sales generate liquidity of approximately $10 million monthly for the company.

The company’s CEO, Bijan Moezifar Rahmani, stated:

“Certainly, no one is happy about leaving large amounts of money on the table with every barrel sold.”
The company stated that it expects the total production in the Tuwok concession to continue at an average of 80,000 barrels per day.

DNOW owns a 75% stake in the Tuwok field, while its partner, Genel Energy, owns 25%. (Reuters)