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DNO Confirms Kurdistan Oil Payment
OSLO--Norwegian-listed oil producer DNO ASA (DNO.OS) confirmed Wednesday it had received a $30 million payment for oil exports from the Iraqi region of Kurdistan, and said the amount would be shared with its partner Genel Energy PLC. Out of the payment, DNO said it would get $20.625 million and Genel Energy would get $9.375 million. The oil was exported by the regional government in Kurdistan from DNO's main producing asset, the Tawke field near the border between Iraq and Turkey. This payment and the payments to follow until producers receive full contractual entitlements for exports propel us towards regularization and internationalization of the oil industry in Kurdistan," said DNO's Executive Chairman Bijan Mossavar-Rahmani. "We are committed to Kurdistan and will do more with more. DNO's partner, U.K. oil explorer Genel Energy, confirmed Tuesday it had received combined payments of $24 million from its stakes in the Taq Taq field and the Tawke field, and said oil exports by pipeline from Kurdistan through Turkey had recently increased to more than 350,000 barrels of oil a day.
The Kurdistan regional government, or KRG, said at the start of November that it would make an initial payment of $75 million to companies operating in the region. Earlier this year, the KRG started selling cargoes of exported oil by sea, often running up against political opposition from Baghdad.
The Iraqi government agreed Tuesday to an oil-export deal with the northern region of Kurdistan, signaling an end to a political impasse that has hobbled the economy and stymied efforts to fight the Islamic State insurgency.
The deal satisfies many of the Kurds' outstanding demands, giving them profits from what they consider their own oil, a greater say in how Iraq's oil industry is administered, and additional funding and recognition for their semi autonomous defense forces.
DNO said last month it had delayed until early-2015 its target of increasing output to 200,000 barrels a day from the Tawke field, from a previous target to ramp-up output by the end of 2014, but said a stabilizing security environment allowed the resumption of the expansion program with some delay.
Write to Kjetil Malkenes Hovland at [You must be registered and logged in to see this link.]
OSLO--Norwegian-listed oil producer DNO ASA (DNO.OS) confirmed Wednesday it had received a $30 million payment for oil exports from the Iraqi region of Kurdistan, and said the amount would be shared with its partner Genel Energy PLC. Out of the payment, DNO said it would get $20.625 million and Genel Energy would get $9.375 million. The oil was exported by the regional government in Kurdistan from DNO's main producing asset, the Tawke field near the border between Iraq and Turkey. This payment and the payments to follow until producers receive full contractual entitlements for exports propel us towards regularization and internationalization of the oil industry in Kurdistan," said DNO's Executive Chairman Bijan Mossavar-Rahmani. "We are committed to Kurdistan and will do more with more. DNO's partner, U.K. oil explorer Genel Energy, confirmed Tuesday it had received combined payments of $24 million from its stakes in the Taq Taq field and the Tawke field, and said oil exports by pipeline from Kurdistan through Turkey had recently increased to more than 350,000 barrels of oil a day.
The Kurdistan regional government, or KRG, said at the start of November that it would make an initial payment of $75 million to companies operating in the region. Earlier this year, the KRG started selling cargoes of exported oil by sea, often running up against political opposition from Baghdad.
The Iraqi government agreed Tuesday to an oil-export deal with the northern region of Kurdistan, signaling an end to a political impasse that has hobbled the economy and stymied efforts to fight the Islamic State insurgency.
The deal satisfies many of the Kurds' outstanding demands, giving them profits from what they consider their own oil, a greater say in how Iraq's oil industry is administered, and additional funding and recognition for their semi autonomous defense forces.
DNO said last month it had delayed until early-2015 its target of increasing output to 200,000 barrels a day from the Tawke field, from a previous target to ramp-up output by the end of 2014, but said a stabilizing security environment allowed the resumption of the expansion program with some delay.
Write to Kjetil Malkenes Hovland at [You must be registered and logged in to see this link.]
