Gulf Oil and Gas accountACCOUNT

DNO Increases Stake at Tawke Oilfields in Kurdish Region of Iraq

Source: www.gulfoilandgas.com 8/24/2017, Location: Middle East

Share |
DNO ASA, the Norwegian oil and gas operator, has been assigned the 20 percent interest in the Tawke license held by the Kurdistan Regional Government as part of a landmark settlement of outstanding receivables owed to the Company for past crude oil deliveries. Following the settlement, DNO holds a 75 percent operated stake in the license containing the Tawke and Peshkabir fields with combined proven and probable reserves in excess of 500 million barrels and production in excess of 100,000 barrels of oil per day.

In addition to the 20 percent interest, the Company will receive three percent of gross license revenues each month from the Government over a five-year period. The settlement is effective as of 1 August 2017.

DNO has settled its claims for all outstanding Tawke license receivables from the Government and the Government has exercised its Tawke license audit rights to its satisfaction for the period up to the effective date and has no adjustment claims. The Government has also discharged DNO from certain payment obligations including production bonuses, license fees and a USD 150 million water purification project that is no longer required by the Government.

The removal of these liabilities and the transfer to DNO of the 20 percent interest and the right to the three percent revenue stream will bolster the Company's balance sheet and future cash flow.

"We are very pleased with the Government's initiative to settle receivables and normalize export payments to the operators," said Bijan Mossavar-Rahmani, DNO's Executive Chairman. "This sends a strong positive signal to investors and helps restore confidence in Kurdistan's oil sector," he added.

DNO's June-July 2017 outstanding invoices for Kurdistan exports will continue to be paid under the payment arrangement in place since January 2016.

Acquisitions and Divestitures News in Iraq >>

United States >>  7/19/2018 - Diversified Gas & Oil PLC, the US based gas and oil producer, completed the acquisition of EQT Corporation's southern Appalachian producing gas and oi...
Papua-New Guinea >>  7/17/2018 - Oil Search has expanded its exploration portfolio in the onshore Gulf Basin, PNG. In July 2018, Oil Search executed a farm-in to PPLs 474, 475 and 476...

Australia >>  7/16/2018 - As part of portfolio rationalization, PTTEP announces the divestment of a 100% stake in the Montara field to align with the company’s business strateg...
Ireland >>  7/13/2018 - Providence Resources P.l.c., the Irish based Oil and Gas Exploration Company, provides a Licence Update on Frontier Exploration Licence (“FEL”) 2/14. ...

Indonesia >>  7/11/2018 - Chevron will exit the Makassar Strait gas block in the Indonesia Deepwater Development (IDD) offshore natural gas project to focus on more promising a...
United States >>  7/10/2018 - QEP Resources, Inc. announced that its wholly owned subsidiary, QEP Energy Company, has entered into a definitive agreement to sell natural gas and oi...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Iraq Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 |

Oil & Gas Projects in Iraq >>

More News

 

Oil & Gas Companies in Iraq >>


Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.