DNO has halted its production in Yemen after declaring force majeure on a pair of operated blocks due to strike action and other labour issues.
The Oslo-listed player said on Tuesday it had temporarily suspended output from Block 32, which hosts the producing Godah and Tasour oilfields, and Block 43, which contains the Nabrajah field, after invoking force majeure under its production sharing contracts for the tracts.
The company had net oil production of 1600 barrels per day from the two blocks in the Howarime region, which produce a total of 3400 bpd, before the suspension.
Operations on the blocks have been hit by blockades carried out by local groups since late last year that have restricted transport of equipment and supplies, as well as movement of contractors, according to DNO.
The last straw for the operator appears to have been a work stoppage initiated by labour unions involving administrative staff at the blocks on 22 June that led to it issuing force majeure notices to Yemen’s Oil Ministry.
As a result, DNO’s obligations under the PSCs are suspended “until the impediments to safe, secure and sustained operations are removed”, it said in a statement.
A company spokesman said it is in dialogue with the government and unions in an effort to resolve the labour dispute, underlining it is “committed to resuming operations in Yemen”, where DNO has been active since 1998.
DNO operates blocks 32 and 43 with stakes of 38.95% and 56.67% respectively.
The company last year declared force majeure on Block 47 in Yemen, hosting the Yaleen and Sharnah fields, which it operates with a 40% interest.