On Thursday, Norwegian oil company DNO made an announcement stating that it has initiated partial crude oil production in the Tawke oilfield in the Kurdistan Region. The produced oil is being sold to local companies. This development comes in the midst of ongoing disagreements concerning the Region’s oil export, which has remained suspended since April.
Following a ruling by a Paris arbitration court on March 23, which favored Baghdad and deemed Ankara’s actions as a breach of a 1973 pipeline agreement. Turkey halted the transportation of Kurdish oil through the Iraq-Turkey pipeline. This decision came after the Kurdistan Region began independent oil exports in 2014. Despite numerous discussions between Kurdish, Iraqi, and Turkish officials, the oil export has yet to resume. Consequently, several oil companies have suspended their production activities.
In a statement released on Thursday, Norwegian company DNO announced the resumption of production in its prominent Tawke field.
DNO had halted its activities for four months due to ban on Kurdish oil exports.
DNO stated that production recommenced last month primarily for conducting well integrity tests and synchronizing reservoir models. However, due to the high demand for Tawke oil, production has continued. Currently, the field is producing an average of 40,000 barrels of oil per day (bopd). On the same license, the neighboring Peshkabir field remains closed.
DNO further mentioned that They supply half of Tawke production to KRG. DNO sells the remaining portion of the Tawke production, representing a 75 percent share for DNO and 25 percent share for Genel Energy International Limited, to local trading companies. The transportation of the oil is conducted through road tankers. Contract-specific pricing applies, with an average of approximately 50 percent of pre-closure levels. Importantly, DNO receives prompt and direct payments for their services. DNO produced 107.637 oil barrels per day in 2022 in Tawke, which amounts quarter of KRG’s total exports. In the first quarter of 2023, it produced an average of 94,720 barrels per day, according to its figures
DNO is a Norwegian oil and gas company that has operations in the Kurdistan Region of Iraq. Since 2004, DNO has actively explored and produced oil in the region.The company has a significant presence in the Kurdistan Region and operates the Tawke oilfield, which is one of the largest producing fields in the region. DNO has been working in partnership with the Kurdistan Regional Government and other companies to develop and produce oil resources in the area. DNO was the first international oil company to enter the Kurdistan region of Iraq, at a time when the Kurdish region’s oil industry was virtually non-existent.
