The Norwegian oil and gas operator, DNO ASA which largely operates in Iraqi Kurdistan has released its annual 2015 report which indicated record levels of operations despite the drop in global oil prices and a downturn in payments for exports from Kurdistan.
Production went up 23%, up to 144,500 barrels per day. Revenues, however, dropped to $187US million in 2015, down 59% from 2014. DNO's flagship Tawke field in Iraqi Kurdistan averaged 135,200 barrels per day and out of that, 114,100 was delivered via a pipeline through Turkey. Yet, capital expenditures were reduced from $297US million in 2014 to $51US million in 2015. DNO also reported a overall operating loss of $174US million in 2015, as opposed to 2014 when DNO lost $243US million due to lower revenues, restructuring and impairment charges. However, DNO ended the year with a cash balance of $238US million, up from $114US million at the end of 2014.
“With a strong balance sheet, major development projects already completed and the flexibility to align our spending with our earning, we are well-positioned among our peer group,” said Chairman Bijan Mossavar-Rahmani DNO’s Executive. “We are cautiously optimistic oil prices will recover in the coming months but remain stubbornly resilient if they don’t,” he added.