DNO ASA has announced that gross production from its operated Tawke license in the Kurdistan region of Iraq continues to climb, with the December to date average approaching 90 000 bpd.
That lifts the projected 4Q23 figure to 65 000 bpd, up from 26 000 bpd in the 3Q and zero production in the 2Q, following closure of the Iraq-Türkiye Pipeline in March 2023.
In addition to stepping up local sales, DNO has reduced costs materially since the pipeline closure, with operational spend in the Tawke license averaging some 65% below the pre-export shutdown level. The Tawke license holds the legacy Tawke field in production since 2007 and the Peshkabir field in production since 2017. Both fields were developed and put in production less than two years following discovery.
“These are resilient fields and DNO is a resilient company,” said DNO Executive Chairman Bijan Mossavar-Rahmani. “Even with local sales prices as low as half of those realised from export sales through Türkiye, strong production generates material free cash flow for DNO,” he added.
“We remain confident that the latest challenges facing DNO and the other international oil companies will be resolved once again and we remain committed to growing our business in Kurdistan as we have over the past two decades,” Mr. Mossavar-Rahmani said. “And that is notwithstanding a pivot to Norway where we have been reporting exploration discovery after discovery over the past two to three years.”
DNO is planning to drill another well in the Baeshiqa license in Kurdistan in 2024 following a discovery made in 2019.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/19122023/dno-kurdistan-production-continues-to-climb/