DNO to raise Kurdistan Region investments
OSLO, February 11, 2016 – Norwegian independent DNO on Thursday said it would increase its investments in the Kurdistan Region of Iraq. The news follows the January 2016 announcement by the Ministry of Natural Resources to start paying operators based on their contractual entitlements.
DNO announced it would implement USD 100 million worth in capital spending projects in the Tawke field in 2016, where planned water-handling facilities and new production wells should combat production decline and facilitate a 10-percent production increase to 135,000 barrels of oil per day by mid-2016. Eventually, the company hopes to reach 200,000 barrels of oil per day.
In 2015, DNO was forced to reduce capital spending in the Kurdistan Region from USD 297 million to USD 51 million. The shift in company strategy also entails plans to drill the Peshkabir-2 well. Should the company be able to successfully appraise the discovery, its proximity to Fish Khabur would allow it to be tied back to infrastructure there.
Having also received regular payments from the the Kurdistan Regional Government, DNO’s partner in the Tawke and Dohuk production-sharing contracts Genel Energy earlier this week too announced it would ratchet up investments.
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