Oryx resumes output at KRG's Demir Dagh

Back online: Production resumes at Demir Dagh oilfield

Canada’s Oryx Petroleum has resumed operations at its Demir Dagh oilfield in the Kurdistan region of Iraq after the security situation forced a more than two-week long closure.

The Toronto-listed explorer said that production and sales have averaged around 4300 barrels per day of oil over the past ten days, higher than output before the field was shut in on 8 August.

Oryx Petroleum chief executive Michael Ebsary said that “tangible improvements to the security environment in the Kurdistan region have enabled us to resume all activities at our core asset”.

He said that the company hoped to minimise delays in its production and development ramp-up at the field as a result of the interruption.

While sales are presently to the domestic market, work is continuing on connecting the production facilities to the Kurdistan - Turkey export pipeline, with completion expected by the fourth quarter, Oryx Petroleum said.

Oryx Petroleum added that appraisal activities at the explorer’s Ain Al Safra and Banan discoveries remained suspended pending further improvement in the security environment in the westernmost portions of the Hawler license area.

Canada’s ShaMaran Petroleum said on Tuesday that operator Taqa had resumed drilling on their Atrush block last Saturday after a halting operations in the same week as Oryx Petroleum.

Many international companies made moves to suspend or reduce operations and relocate or withdraw staff from Iraqi Kurdistan in the wake of the ISIS terrorist group’s rapid advances in the region, including ExxonMobil, Chevron, OMV, Genel Energy, Afren and Hess.

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