OSLO: Norwegian oil company DNO plans to bring two oil production wells back on stream in its northern Oman Block 8 license during 2017, nearly doubling daily production at its West Bukha and Bukha oilfields, it announced. DNO’s majority shareholder is RAK Petroleum, of Ras al-Khaimah.
According to details, in its interim report for 2016, DNO announced plans to step up drilling in the Kurdistan region of Iraq, on the back of 2016 operating profits and improved payments for exports from its flagship Tawke field in Kurdistan. The company also released its annual reserves report which showed an increase in combined proven and probable (oil and gas) reserves (2P) and contingent resources (2C) following its new oil discovery at the Peshkabir field in Kurdistan.
DNO reported interim 2016 operating profits of US$6 million, reversing an operating loss of $174 million in 2015. Following two years of cost cutting and asset rationalisation, the company is restarting investments to replenish its oil and gas reserves and restore production across its portfolio.
The company is considering three additional wells at Tawke to raise production above current levels of around 115,000 barrels of oil per day contingent on regular and predictable export payments from the Kurdistan Regional Government.
During 2016, DNO received ten payments totaling $210 million net to the company for Tawke exports and outstanding receivables. Three additional payments totaling $59 million net to DNO have been received to date in the first quarter.
As of 31st December 2016, DNO’s Company Working Interest (CWI) 2P reserves and 2C resources were estimated at 529.6 MMboe, up from 523.1 MMboe at year-end 2015. CWI 2P reserves were estimated at 368.3 MMboe, down from 391.5 MMboe at year-end 2015 after adjusting for CWI production of 25.3 MMboe during the year and a positive technical revision of 2.1 MMboe. CWI 2C resources were estimated at 161.3 MMboe, up from 131.6 MMboe at year-end 2015.
DNO is a Norway-based oil and gas operator focused on the Middle East and North Africa. Founded in 1971 and listed on the Oslo Stock Exchange, the company holds stakes in onshore and offshore licenses at various stages of exploration, development and production in the Kurdistan region of Iraq, Yemen, Oman, the United Arab Emirates, Tunisia and Somaliland. Its largest shareholder is UAE-based RAK Petroleum.
