Oil Output Increases at DNOs Kurdistan Fields

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Oil Output Increases at DNOs Kurdistan Fields

DNO has confirmed that production is increasing in its fields in Iraqi Kurdistan and has doubled in Q4 compared to Q3.

The Company stated that APIKUR members can produce oil for pipeline exports once payment terms are clarified.

In its third-quarter results on Thursday, it said:

After the Iraq-Türkiye Pipeline was closed in March, the Company slowly reopened the Tawke and Peshkabir fields. DNO, with 75 percent ownership, and Genel Energy International Ltd, with 25 percent ownership, increased deliveries to local trading companies in Kurdistan. Production is continuously growing; in the fourth quarter, the output has been twice as much as in the third quarter.

The contractual entitlement between DNO and Genel, which is currently around 50% of the volumes produced, is sold at prices with a narrow variation in the mid-USD 30s per barrel. Payments are made in advance before any oil is delivered.

DNO has recovered around USD 15 million over the past year, including USD 8 million in October, for the accumulated KRG debt to DNO for previous oil sales in 2022 and 2023 (more than USD 300 million):

According to the recent statement by the Prime Minister of Iraq, Baghdad, and Ankara are ready to resume the flows from Kurdistan as soon as certain unspecified agreements between the international oil companies and Iraq and Erbil are reached. However, the Association of the Petroleum Industry of Kurdistan (APIKUR), of which DNO is one of six members, has stated that the member companies cannot produce oil for pipeline exports until it becomes clear how they will be paid for their contractual entitlements of oil already sold and delivered for export and for future sales of such crude for export. APIKUR members are owed nearly USD 1 billion in overdue and unpaid arrears.