DNO Sees Fourth Quarter Flow Drop

Norwegian oil producer DNO's fourth-quarter net entitlement production from Yemen showed a small drop in the fourth quarter, and total production fell heavily due to the halt in Iraqi exports.

DNO's fourth quarter NI production from Yemen, which best reflects DNO's actual share of the output; fell to 4738 from 4987 bpd in the third quarter.

Yemen December production stood at an average 4913 bpd and the average realized oil price in the fourth quarter was $76 a barrel, reported Reute

The company's total working interest production fell to 13,581 barrels of oil per day in the fourth quarter, down from 44,578 bpd in the third.

Total working interest production in December stood at 14,744 bpd.

DNO said its fourth quarter NI production from the Tawke field in Kurdistan dropped to 3959 bpd from 24,796 bpd in the third quarter after an ongoing disagreement with authorities over a revenue-sharing deal halted exports.

DNO was the first foreign company to drill for oil in Iraq after the 2003 US-led invasion. The company set up production in Iraqi Kurdistan but has halted exports due to the row between the Arab-led central government and the semi-autonomous Kurdish authorities.

DNO exported as much as 50,000 barrels per day from its Tawke site in Iraqi Kurdistan in mid-2009 under a temporary deal, but has still not been paid for its exports. Tawke production has been reduced and is now sold locally.

Earlier this week, shares in DNO jumped more than 20%on renewed hopes for an Iraqi export deal, but analysts say it could be a long path.

Shares in DNO had dipped 0.08% to 5.90 crowns by 0857 GMT against a 0.3% rise in the main Oslo index.

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