ERBIL, Kurdistan Region —Norwegian oil and gas company DNO announced a significant increase in its oil production in the Kurdistan Region today.
The company said its gross production in the Tawke and Peshkabir fields near the Turkish border averaged 126,700 barrels of oil per day (bpd) in the first half of 2019, up 20% from the first half of 2018. Tawke contributed 71,700 bpd while Peshkabir contributed 55,000, according to a company press release.
DNO plans to add 12 wells at Tawke and three at Peshkabir in the second half of 2019. It also announced the drilling of two oil wells in Bashiqa, a disputed territory overlooking the Nineveh Plains. While drilling in areas claimed by the Kurdistan Regional Government (KRG) and federal Iraqi government has been a source of tension, the two wells will be tested in August, according to the company’s statement.
The Tawke oil field is the biggest field operated by an international company in the Kurdistan Region. Peshkabir is the second biggest, according to a press release from Genel Energy, an oil and gas company that has an interest in DNO’s Kurdistan Region fields.
The news follows Dana Gas’ Monday announcement of a major increase in its revenues in the Kurdistan Region.
The Kurdistan Region sells oil internationally and pays international oil companies monthly to produce it. The KRG originally struggled to attract international companies, but passed a business-friendly oil and gas law in 2007 that opened the gates to many foreign companies including oil giants to enter Kurdistan and search for oil.
Due to decades-long disputes with Baghdad, the Kurdistan Region needed to export its oil outside of its landlocked territory. Turkey became apparent as the only viable option, despite previous years of animosity between Erbil and Ankara. The first shipment of oil through the pipeline linking the Kurdistan Region and Turkey hit markets in May 2014.
The Kurdistan Region’s ability to pay the companies for their services became strained during the financial crisis of 2014. A combination of mismanagement, drops in oil prices, an influx of displaced people and the war with the Islamic State (ISIS) caused the economy to crash at the time. The crisis lasted until 2018.
The company said its gross production in the Tawke and Peshkabir fields near the Turkish border averaged 126,700 barrels of oil per day (bpd) in the first half of 2019, up 20% from the first half of 2018. Tawke contributed 71,700 bpd while Peshkabir contributed 55,000, according to a company press release.
DNO plans to add 12 wells at Tawke and three at Peshkabir in the second half of 2019. It also announced the drilling of two oil wells in Bashiqa, a disputed territory overlooking the Nineveh Plains. While drilling in areas claimed by the Kurdistan Regional Government (KRG) and federal Iraqi government has been a source of tension, the two wells will be tested in August, according to the company’s statement.
The Tawke oil field is the biggest field operated by an international company in the Kurdistan Region. Peshkabir is the second biggest, according to a press release from Genel Energy, an oil and gas company that has an interest in DNO’s Kurdistan Region fields.
The news follows Dana Gas’ Monday announcement of a major increase in its revenues in the Kurdistan Region.
The Kurdistan Region sells oil internationally and pays international oil companies monthly to produce it. The KRG originally struggled to attract international companies, but passed a business-friendly oil and gas law in 2007 that opened the gates to many foreign companies including oil giants to enter Kurdistan and search for oil.
Due to decades-long disputes with Baghdad, the Kurdistan Region needed to export its oil outside of its landlocked territory. Turkey became apparent as the only viable option, despite previous years of animosity between Erbil and Ankara. The first shipment of oil through the pipeline linking the Kurdistan Region and Turkey hit markets in May 2014.
The Kurdistan Region’s ability to pay the companies for their services became strained during the financial crisis of 2014. A combination of mismanagement, drops in oil prices, an influx of displaced people and the war with the Islamic State (ISIS) caused the economy to crash at the time. The crisis lasted until 2018.
KRG-federal government relations are now improving as KRG Prime Minister Masrour Barzani has said he would “develop a constructive and stable partnership” with Baghdad.
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