DNO to Receive Fiscal Entitlements Pursuant to Tawke PSC

DNO International ASA (DNO International), the Norwegian oil and gas company, announced that it has reached agreement with the Kurdistan Regional Government (KRG) to fully apply the fiscal terms and conditions of the existing Production Sharing Contract (PSC) covering the Tawke license moving forward, replacing temporary arrangements in place since start of operations.

The agreement also provides for a reconciliation of past accounts and application of contract fiscal terms from inception until 1 June 2012. As a result of this reconciliation, DNO International's share of Tawke oil sales over a period of about eight weeks will be allocated to the KRG for local consumption but the Company expects that its overall revenues for the year will remain unchanged. The reconciliation calculations do not include payments not yet received for exports through the Iraqi pipeline system in 2009 and again in 2011-12. When those payments are made, DNO International will receive its pro rata share as provided for under the PSC.

"We are very pleased with this outcome and the overall trend towards normalization," said Bijan Mossavar-Rahmani, DNO International's Executive Chairman. "The previous ad hoc arrangements put in place by the KRG provided us tremendous support during difficult and uncertain periods and allowed us to continue our investment programs," he added. "But now that we are firmly established, our shareholders benefit from greater clarity and transparency as to the status of the Tawke project and our other investments in the Kurdistan Region of Iraq."

• Tanzania Drafts Terms to Tame the Gas Boom 
• Iran and Lebanon Boosting Oil Cooperation 
• Petroleb Participates in Lebanon's First E&P Bid Round 
• HKN Energy Incident in Sarsang Oil Field 
• Gunmen Attack Iraq's Akkas Gas Field 
• Syrian Rebels Set Fire to Three Eastern Oil Wells 
• Eni Mulls Opening Iraq Business to China's CNPC 
• Offshore Colombia Win for Wood Group PSN 
• Clashes Break out at Libyan Waha Oil Field 
• Iraq Budget Stalemate Deepens Over Kurd Oil Payments 

• DNO Concluded Farm-out Arrangement in Block 43, Yemen 
• DNO ASA - More oil in Tasour field 
• DNO International Restarts West Bukha Production 
• New Oil Discovery in Iraq Erbil license 
• Oil & Gas Companies