DNO ASA, the Norwegian oil and gas operator, today reported record oil and gas output in 2015 though the company's results were impacted by the sharp drop in world oil prices.
Operated production was up 23 percent last year to 144,200 barrels of oil equivalent per day while revenues dropped to USD 187 million in 2015, down 59 percent from 2014.
Releasing its preliminary 2015 fourth quarter and annual results, the company announced plans to resume investments at its flagship Tawke field in the Kurdistan Region of Iraq, following five consecutive monthly payments for oil exports and a new payment arrangement tied to its contractual entitlements.
DNO's Executive Chairman Bijan Mossavar-Rahmani (pictured) said:
"As much of the industry continues to hunker down, DNO's foot is coming off the brake and pressing on the accelerator.
"The export payment arrangement just put in place provides regularity, predictability and transparency, thereby laying the foundation for stepped up investments in Kurdistan."
New investments at Tawke are expected to reverse natural field decline and boost output by at least 10 percent by mid-year, with further output increases to follow as additional investments are made. The company also plans to drill the Peshkabir-2 appraisal well this year. If successful, DNO plans to quickly tie back the Peshkabir field to existing infrastructure at Fish Khabur only 10 kilometers away.
Mr. Mossavar-Rahmani added:
"DNO has already pulled away from the pack in Kurdistan in terms of production and exports, currently contributing nearly 60 percent of export volumes by the international oil companies.
"In addition to the scale and attractive economics of DNO's oil reserves -- unrivaled among our peer group -- we have balance sheet strength to weather the oil price storm and will emerge from this crisis stronger and more profitable ... We are stubbornly resilient."
The company reported a 2015 operating loss of USD 174 million (operating loss of USD 243 million in 2014) on the back of lower revenues, restructuring and impairment charges. DNO ended the year with a cash balance of USD 238 million, up from USD 114 million in 2014.