Norwegian oil and gas operator DNO has registered solid growth in its operations across the Kurdistan region of Iraq for the year with a projected production volume of 65,000 barrels per day (bpd) in the fourth quarter, up from 26,000 bpd in Q3.
A major global player in the energy sector, DNO operates and has a 75% stake in the Tawke licence with partner Genel Energy International Limited holding the balance.
In the Baeshiqa licence, DNO holds a 64% operated interest (80 percent paying interest) with partners Turkish Energy Company Limited holding a 16 percent interest (20 percent paying interest) and the Kurdistan Regional Government holding a 20 percent carried interest.
Announcing the Q4 growth, DNO said the gross production from its operated Tawke licence continues to climb, with the December to date average approaching 90,000 bpd.
That lifts the projected fourth quarter 2023 figure to 65,000 bpd, up from 26,000 bpd in the third quarter and zero production in the second quarter, following closure of the Iraq-Türkiye Pipeline in March 2023.
Of the total Tawke licence production, DNO said close to 40% represents its current entitlement share, which is sold to local buyers at prices in the low to mid-$30s per barrel.
"These are resilient fields and DNO is a resilient company," remarked its Executive Chairman Bijan Mossavar-Rahmani.
"Even with local sales prices as low as half of those realized from export sales through Türkiye, strong production generates material free cash flow for DNO," he stated.
Bouyed by the growth, DNO is planning to drill another well in the Baeshiqa licence in Kurdistan next year following a discovery made in 2019.