DNO's Q3 Production Reports in Kurdistan Region

Source: www.gulfoilandgas.com 10/19/2009, Location: Middle East

DNO's working interest (WI) production from the Tawke field in Kurdistan in third quarter 2009 was 37,036 bopd and DNO's net entitlement production was 24,796 bopd. Gross production in third quarter was 41,157 bopd. Out of total gross production, gross export volume from Tawke was 34,634 bopd. Local sale of crude oil to the domestic market in third quarter contributed with 6,387 bopd. Inventory changes affect the sales figures.

Kurdistan Operations
Export of crude oil from the Tawke field commenced June 1, 2009 and continued until September 21, 2009. In this period the Tawke production and export increased in line with the plan agreed with the KRG and North Oil Company (NOC), and the Tawke facilities have been tasted at their design capacity. The average deliveries in August from Tawke were close to the design capacity.

As previously reported KRG suspended all DNO's operations in the Kurdistan Region with immediate effect 21 September. All issues with respect to the suspension were resolved October 5 and DNO's rights to its production sharing contracts were reinstated with immediate effect. Going forward DNO will focus on local sales until a future payment mechanism for crude exports is in place.


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