DNO puts drill drive on agenda

Norway’s DNO is stepping up drilling activities in northern Iraq and Oman on the back of improved payments for crude exports from its flagship Tawke field in Iraqi Kurdistan, writes Nassir Shirkhani.

Planned 2017 capital investments are estimated at $100 million, and include four new production wells at Tawke.

DNO is considering three more wells at Tawke to increase production above current levels of around 115,000 barrels per day of oil, contingent on regular and predictable export payments from the Kurdistan Regional Government.

Last year, DNO received 10 payments totalling $210 million net to the company for Tawke exports and outstanding receivables.

Three additional payments totalling $59 million net to DNO have been received to date in the first quarter of 2017.

“These payments create momentum as we move into 2017,” said DNO executive chairman Bijan Mossavar-Rahmani.

Also in Iraqi Kurdistan, DNO plans to drill a third well at the nearby Peshkabir field and an appraisal/production well at the Benenan field in the Erbil licence.

Early production from Peshkabir and transport of oil to the DNO’s gathering, processing and export facilities at Fish Khabur is under assessment.

In Oman, two wells will be brought back on stream in offshore Block 8, with plans to nearly double output at the West Bukha and Bukha fields.