2024-02-08T14:09:08+00:00
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/ The Norwegian oil company DNO announced on Thursday that its production in the Kurdistan Region has largely “recovered” from the repercussions of the closure of the main export pipeline via Turkey, noting that the price of a barrel is now being sold locally at a reduced price.
The company said in a statement reported by Sky News Arabia that at the end of the year, total production from the Tawke field concession, which the company operates, had largely recovered after the export pipeline was shut down in March 2023 and averaged 80,000 barrels of oil equivalent per day.
Oil flows of about 450,000 barrels per day from the Kurdistan Region to Turkey were halted in March after the International Chamber of Commerce issued a ruling in an arbitration case. It remains unclear when exports could resume.
The company produced about 95,000 barrels of oil equivalent per day from the Tawke and Pishkebir fields in the Tawke concession before the pipeline shutdown. That dropped to about 35,000 barrels in the third quarter of 2023.
The company was able to increase production by selling more oil to the local market, as the oil is transported to customers via land tankers.
DNO said it was selling oil at prices in the $30-$35 per barrel range, but with operating spending also falling due to a halt in drilling, the sales were generating about $10 million a month in cash for the company.
“Certainly no one is happy to leave big money on the table with every barrel sold,” said CEO Bijan Mozaffar-Rahmani.
The company said it expects total production at the Tawke concession to continue at an average of 80,000 barrels per day.
DNO owns a 75% stake in the Tawke field, while its partner Genel Energy owns 25%.