DNO ASA, the Norwegian oil and gas operator, reported third quarter operated production of 152,507 barrels of oil equivalent per day (boepd) with year-to-date volumes up nearly 30 percent from 2014. Output from the company's flagship Tawke oil field in the Kurdistan region of Iraq averaged 145,184 barrels of oil per day (bopd), of which 120,633 bopd was delivered for pipeline export through Turkey and the balance sold into the local market.
A Tawke export payment of USD 30 million (USD 22 million net to DNO) was received during the third quarter, in addition to USD 24 million net to DNO from local oil and refined product sales for total Kurdistan revenues during the third quarter of USD 46 million. Revenues remain below DNO's contractual entitlement from Tawke, although receivables are growing at a slower rate.
"With the worst of the oil price crisis behind us, we have sharpened our focus on monetizing our share of Tawke production, including exploring new marketing arrangements," said Bijan Mossavar-Rahmani, DNO's Executive Chairman. "Regular export payments and a timetable for recovery of around USD 1 billion in Kurdistan receivables are key to resuming Tawke investment necessary to reverse natural field decline and sustain production," he added.
Mr. Mossavar-Rahmani estimated that the aggregate value of Tawke production is USD 2 billion annually at current output and price levels.
Cost reduction measures initiated last year have been completed and following four consecutive quarters of operating losses the company reported break-even operating results in the third quarter.