Leading Norwegian oil and gas operator DNO continues to ramped up its activity in the Kurdistan region of Iraq, where fast track development of the Peshkabir field is expected to boost output by another 15,000 barrels of oil per day (bpd) to 50,000 bpd by year-end, said a top official.
As the most active driller in Kurdistan, DNO has three rigs operating across its licenses with a fourth to be added next month, stated DNO’s Executive Chairman Bijan Mossavar-Rahmani.
Two more will be active at the flagship Tawke field to reverse natural field decline through workovers and the drilling of two wells in the main Cretaceous reservoir and two wells in the shallow Jeribe reservoir, he noted.
“Kurdistan is back and so is DNO,” remarked Mossavar-Rahmani while speaking at a company meeting to announce the first half financial results.
The company reported a net profit of $61 million and free cash flow of $142 million during the first half of the year.
It also netted revenues worth $289 million which were up 83 per cent from the same period last year.
Impressed with robust performance, the Norwegian oil giant has announced plans for its first dividend distribution to shareholders in 13 years. The planned annual dividend distribution of NOK434 million ($50 million) will be paid in two tranches, it added.
“With growing production and robust and reliable revenues, the dividend announcement underscores confidence in our strong growth prospects,” remarked Mossavar-Rahmani.
DNO said its operations will begin at the Baeshiqa license with another rig to be mobilized to spud the first well in September as part of a back-to-back, three-well exploration program.
DNO had acquired a 32 per cent interest in and operatorship of the Baeshiqa license last year, joining ExxonMobil (32 per cent), the Turkish Energy Company (16 per cent) and the Kurdistan Regional Government (20 per cent).
At Peshkabir, the fourth rig will spud Peshkabir-8 in 10 days followed by Peshkabir-9 in October, said the company in a statement.
Early production and successful appraisal have raised previous field proven (1P) and proven and probable (2P) reserves. Two newly completed wells, Peshkabir-6 and Peshkabir-7, will commence testing by the end of this month before being placed on production. Peshkabir-6 is key to unlocking further Cretaceous and Triassic reserves, it added.