By John Lee.
DNO has confirmed that production continues to increase at its fields in Iraqi Kurdistan, with output so far in the fourth quarter averaging double the level of the third quarter.
However, the company added that APIKUR members will "not be in a position to produce oil for pipeline exports until it is clear how they will be paid."
In its third quarter results on Thursay, it said:
"Following closure of the Iraq-Türkiye Pipeline last March, the Company gradually reopened the Tawke and Peshkabir fields (DNO 75 percent and Genel Energy International Ltd 25 percent) and stepped up deliveries to local trading companies in Kurdistan. Production continues to increase; so far in the fourth quarter output is averaging double the level of the third quarter.
"The DNO-Genel contractual entitlement, currently around one-half of volumes produced, is sold at prices that vary narrowly in the mid USD 30s per barrel, and payments are made in advance before any oil is delivered.
"DNO has over the last 12 months recovered around USD 15 million, including USD 8 million in October, of the accumulated KRG debt to DNO for previous oil sales in 2022 and 2023 (in excess of USD 300 million)
:
"Meanwhile, according to a recent statement by the Prime Minister of Iraq, Baghdad and Ankara are prepared to recommence flows from Kurdistan as soon as certain unspecified agreements between the international oil companies and Iraq and Erbil are reached. In response, the Association of the Petroleum Industry of Kurdistan (APIKUR), of which DNO is one of six members, has stated that the member companies will not be in a position to produce oil for pipeline exports until it is clear how they will be paid for their contractual entitlements of oil already sold and delivered for export and for future sales of such oil for export. APIKUR members are owed nearly USD 1 billion in overdue and unpaid arrears."
(Source: DNO)
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