Tag Archive | "DNO"

DNO Latest International Financial News – Tawke Oilfield, Kurdistan, Share Price and more – brought to you by Iraq Business News

Ergil Completes DNO Summail Contract

By John Lee.

Turkish engineering company Ergil has announced that it has successfully completed manufacturing of storage tanks and storage tank equipment for DNO’s Summail Gas Project — the first gas field developed by DNO in the Kurdistan Region.

The scope of the order included supply of insulated amine storage tank, teg storage tank, portable storage tank, RO water tank, amine run down tank and teg run down tank equipped with electrical heaters.

Oktay Altunergil, CEO of ERGIL, commented:

It was a great pleasure and experience to work with DNO in the past and I am very pleased that our business set to continue.

“DNO is the fastest growing producer and the number one in proved and probable reserves of oil and gas in Kurdistan.

“We are excited to be involved in DNO’s projects again by supplying ERGIL’s world class quality products and services.

(Source: Ergil)

Posted in Construction & EngineeringComments (1)

DNO: Tawke Production Hits 120,000 bpd

By John Lee.

DNO International ASA (“DNO”), the Norwegian oil and gas operator, today announced that production from the Tawke field in the Kurdistan region of Iraq reached 120,021 barrels of oil per day in May, the first time average monthly production has exceeded 100,000 barrel per day.

May production was split 60-40 between local sales and deliveries to the export pipeline at Fish Khabur.

Ahead of its Annual General Meeting to be held at 10:00 CET in Oslo, the Company also announced that production from the Tawke field passed the 75 million barrels cumulative mark on 31 May.

Plans to increase Tawke deliverability to 200,000 barrels per day by yearend 2014 continue on schedule. As part of that expansion program, production testing has commenced on Tawke-26, the first of two recently completed Tawke horizontal wells, with Tawke-24 to follow. A third horizontal well, Tawke-25, is drilling ahead at 1,873 metres.

Elsewhere in Kurdistan, sales of natural gas from the Summail field to the Dohuk power plant commenced in late May and currently average 60 million cubic feet per day from the first well, some 20 percent ahead of plan. Sales will climb as a second well is put on production in June, followed by a third well later this summer.

“We are focused like a laser on scale and speed of delivery, notwithstanding stretch targets, across our portfolio of assets,” said Bijan Mossavar-Rahmani, DNO International’s Executive Chairman.

(Source: DNO)

Posted in Oil & GasComments (0)

First Natural Gas Arrives at Duhok Power Station

The Kurdistan Regional Government has announced the successful delivery via pipeline of the first quantities of natural gas from the gas field at Summail to fuel the Duhok Power Station (pictured).

The Summail Gas Field lies within the area of the Duhok Production Sharing Contract (PSC) and is operated by the Norwegian company DNO, which together with Anglo-Turkish PSC partner Genel Energy, signed a landmark gas sales agreement (GSA) with the KRG on 18 September 18 2013.

Long-term deliveries are expected to reach 120 million cubic feet per day sold on a take-or-pay basis for the duration of the production, showing the KRG can successfully develop its newly discovered gas assets in Kurdistan.

Under the long-term GSA, the KRG will purchase up to 120mmscf/d. Initial volumes will start at around 55mmscf/d, ramping up to 120mmscf/d within the next few months, and thereafter itis hoped that gas production will eventually rise to around 200mmscf/d.

The Duhok Power Station is a 750 MW power plant in the city of Duhok, located 40 kilometres from the field. The power station’s six turbines have been run on expensive diesel until now, due to significant delays in originally expected gas deliveries from the Khor Mor area. Each of the turbines consumes around 24 million litres per month of diesel, or around 27.50mmscf/d natural gas.

The locally-produced natural gas will displace diesel from the power station and is part of a KRG strategy to save the people of Kurdistan millions of dollars every year in costly diesel imports for power generation.

Natural Resources Minister Ashti Hawrami said that the successful commissioning of the Duhok Power Station operated by Mass Global, the Kurdistan main and feeder gas pipelines constructed by Kar Group, and the Summail gas facilities built by DNO, represented a significant step forward for the Kurdistan Region.

Posted in Construction & Engineering, Oil & Gas, Public WorksComments (0)

DNO Announce First Quarter Results

By John Lee.

DNO International ASA, the Norwegian oil and gas company, today announced first quarter 2014 net profit of USD 24 million on operating revenue of USD 113 million.

Production climbed by more than a quarter from the previous quarter to 45,744 barrels of oil equivalent per day on a company working interest (CWI) basis.

The first quarter production figure includes oil deliveries from the Tawke field in Kurdistan to storage facilities in Ceyhan, Turkey. These deliveries were stepped up commencing April 26 and have been averaging some 100,000 barrels per day gross over the past ten days from a total field production of over 120,000 barrels per day, with the balance sold to the local market in Kurdistan.

“We have our foot firmly on the accelerator in Kurdistan where we are now the fastest growing producer and also number one in proven and probable oil and gas reserves,” said Bijan Mossavar-Rahmani, DNO International’s Executive Chairman.

During the quarter, operational cash flow of USD 89 million exceeded capital spending of USD 85 million. The Company’s free cash balance at 31 March was USD 242 million in addition to which the Company held financial assets totalling USD 95 million. These financial assets include DNO International treasury shares and a 4.2 percent stake in RAK Petroleum PCL, DNO International’s largest shareholder.

Operationally, horizontal drilling has continued to deliver exceptional results at the Tawke field. During the first quarter, the Company brought two more high deliverability horizontal wells on production as part of its back-to-back drilling campaign that will see nine such wells completed by yearend. Elsewhere in Kurdistan, the Company has initiated first sale of oil from the Benenan field and first flow of gas from the Summail field.

Additionally, the Company has an active exploration and appraisal drilling program over the next nine months targeting gross prospective resources of 570 million barrels of oil with seven wells across four countries.

(Source: DNO)

Posted in Oil & GasComments (0)

DNO Announce MENA Fellowship Fund

By John Lee.

Harvard Kennedy School (HKS) today announced the creation of the Middle East-North Africa Graduate Fellowship Fund underwritten by a $1 million gift from the Norwegian oil and gas company DNO International ASA.

The fellowship will support qualified applicants who enroll at HKS through the Edward S. Mason Program. The internationally focused Mason Program brings accomplished professionals from around the world to earn a Mid-Career Master in Public Administration (MC/MPA) degree, with a focus on developing analytical and leadership skills.

Bijan Mossavar-Rahmani, DNO International’s Executive Chairman was awarded his MPA in 1982 and said of the donation:

“My DNO International colleagues, which include two other HKS graduates, and I are pleased to help support access to the finest school of public policy in the world by the most talented mid-career students from a region undergoing dramatic societal transformation.”

The program will cover tuition, fees and living expenses for the one-year term of the Mason Program, with awards available beginning with the 2014-15 academic year. Along with the rigorous MC/MPA curriculum, the Mason Program offers intensive co-curricular activities including targeted seminars and workshops culminating in the Mason Certificate in Public Policy and Management.

David Ellwood, the Scott M. Black Professor of Political Economy and Dean of HKS, expressed his delight at the donation:

“We are deeply grateful to DNO International for this outstanding support for students from the Middle East and North Africa and for the leadership that Bijan Mossavar-Rahmani has shown in this effort. These students represent a region of great importance to the world, and we are fortunate to play a role in developing their knowledge and expertise in working towards the public good. We look forward to welcoming the first beneficiaries of this fellowship.”

(Source: DNO, Harvard Kennedy School)


Posted in Oil & GasComments (0)

DNO Announces New Wells at Tawke

By John Lee.

DNO International has announced that two new high rate horizontal wells are now pumping oil at the Tawke filed in the Kurdish region.

The combined rate of production of both wells is 37,000 bpd.

By the year’s end DNO expect to have 9 wells operational in the field, which they hold a 55% interest in. Genel Energy and the KRG hold the remaining interest in Tawke between them.

In one of the new wells, Tawke-21, eight productive fracture corridors penetrated by a 980-meter horizontal section in the main Cretaceous reservoir interval flowed an average rate of 9,700 barrels per day each.

In the other well, Tawke-22, located six kilometers away, seven productive fracture corridors penetrated by an 800-meter horizontal section flowed an average rate of 8,800 barrels per day each.  Both wells are subject to wellbore and surface facilities limitations.

DNO International’s Executive Chairman, Bijan Mossavar-Rahmani announced his satisfaction with the results.

“We hit a new production record of 129,000 barrels per day at the Tawke field on March 5 which is close to the limit of what we currently can deliver by pipeline and road tanker. With the exceptional results from these latest wells and the installation of early production packages and a new 24-inch pipeline, we are on track to meet our ambitious deliverability goal of 200,000 barrels per day in 2014.”

(Source: DNO)

Posted in Oil & GasComments (4)

DNO Shares Hit New Record

By John Lee.

Shares in DNO International, the Norwegian oil and gas company with significant interests in Iraqi Kurdistan, were trading up 5.4 percent on Thursday morning after the company announced third quarter 2013 net profit of NOK 282 million [$45 million] on operating revenue of NOK 810 million [$130 million].

The shares are now priced at a new high of 19.88 krone.

Production climbed by around a third to a record level of 52,780 barrels of oil equivalent per day (boepd) on a company working interest basis, up from 38,720 boepd in the second quarter of 2013.

Bijan Mossavar-Rahmani (pictured), DNO International’s Executive Chairman, said:

We are pleased to have delivered record production in the quarter … Looking ahead, the excellent results from our horizontal drilling program at the Tawke field in the Kurdistan region of Iraq during the third quarter will continue to move the needle for the Company in terms of the field’s production performance and ultimate recovery potential.

Elsewhere in Kurdistan, fast track development of the Summail gas discovery was initiated during the quarter following the signing of a gas sales and purchase agreement to supply gas to the city of Dohuk for local power generation.

Appraisal and development of the heavy oil Benanan and Bastora discoveries in the Erbil block also gathered pace with temporary production facilities installed at both the Benenan-3 and Bastora-2 well sites and government approvals to initiate sales from the wells.

In Yemen, the Salsala-1 oil discovery has added incremental barrels close to infrastructure that will allow for rapid monetization and raise DNO International’s output in that country.

The Company is continuing with high levels of drilling activity with three rigs operating in Kurdistan and one in Yemen as at the reporting date. Operational cash flow of NOK 1,215 million has substantially funded capital spending of NOK 1,266 million during the first nine months of the year. The Company has maintained a robust capital structure with a free cash balance of NOK 1,577 million and net cash position of NOK 187 million as at September 30, 2013.

(Sources: DNO, Yahoo!)

Posted in Oil & GasComments (1)

DNO Sets New Record at Tawke

By John Lee.

DNO International has announced today that it has initiated sales from its second horizontal well in the Tawke field in the Kurdistan region of Iraq following testing at a new record rate of 32,500 barrels of oil per day.

Each of ten independent fracture corridors penetrated by a 930-meter horizontal section in the Cretaceous reservoir interval flowed in excess of 9,000 barrels per day. Tawke-23 was spudded in May 2013 and the cost to drill, complete and test the well was $12 million.

The first horizontal well completed in the field last July, Tawke-20, is located six kilometers away and set the previous record production rate for a Tawke well at 25,000 barrels per day. Both wells are subject to wellbore and surface facilities limitations.

The exceptional results from Tawke-20 and Tawke-23 have fundamentally changed our approach to developing this field and also our expectations for its performance,” said Bijan Mossavar-Rahmani (pictured), DNO International`s Executive Chairman. “By any measure, these are prolific wells tapping into what increasingly feels like a sea of oil,” he added.

Drilling operations are already underway at two additional horizontal wells, Tawke-21 and Tawke-22. Both are slated for completion by yearend 2013.

DNO International holds a 55 percent interest in and operates the Tawke license. Genel Energy plc holds 25 percent and the Kurdistan Regional Government the remaining 20 percent interest.

Commenting today, Tony Hayward, CEO of Genel said:

The outstanding result of the Tawke-23 horizontal well is further evidence of the world-class properties of the Tawke field. We look forward to the results of further horizontal drilling ahead of the significant planned increase in the field’s production capacity.

(Sources: DNO, Genel Energy)

Posted in Oil & GasComments (3)

IBN Newsletter 'FREE Weekly Subscription'