DNO Chief: New Iraqi Govt Positive for Kurdish Oil Exports

DNO’s chief executive said negotiations between the Kurdish Regional Government (KRG), and Iraq’s central authorities on oil exports meant a foundation was in place for an agreement that would enable exports to resume more rapidly.

“We can assume that there have been a lot of discussions around this and perhaps some agreements have been reached, but this can’t be implemented until we have a government,” Eide said.

"The Kurds have likely secured a deal regarding concessions on the oil law and approving the Kurdish oil contract in return for their support", Trond Omdal, an analyst at Arctic Securities ASA, said in a note. “We therefore regard a new Maliki- government supported by the Kurds as positive for DNO.”

DNO has pumped oil in the Kurdish region since 2007 and in June 2009 started exports through Turkey until shipments halted in September of that year.

The company had been delivering about 45,000 barrels a day through a pipeline to Ceyhan in Turkey. Eide said DNO could bring production at its Tawke field up to full capacity “quite quickly” once the company received permission to resume exports. DNO recently reached capacity of 56,000 barrels a day in production at Tawke’s central processing facilities, Eide said today.

(Source: Bloomberg)

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