A man works at an oil facility in the Kurdistan Region. File photo: Rudaw
ERBIL, Kurdistan Region — With smaller energy companies expanding operations in the Kurdistan Region, Norway's DNO ASA announced on Monday it has met its end-of-year target of 50,000 bpd ahead of schedule.
"We are all in on our Kurdistan operations and delivering," stated DNO's Executive Chairman Bijan Mossavar-Rahmani. "Peshkabir continues to exceed expectations and we are eager to probe the promising potential at Baeshiqa," he added.
Two new wells at Peshkabir helped increase production in deeper Cretaceous-level drilling.
"Peshkabir production is processed through temporary test facilities until commissioning of a central processing facility with a capacity of up to 50,000 bopd by end-2018," DNO detailed in a statement.
Not only did the energy company meet its end-2018 target ahead of schedule, but also "below budget."
"Further testing is underway, including test production of multiple producing zones," added DNO.
Tawke and Peshkabir are the company's priamary fields and located in Duhok province, but they are seeking to explore south to Bashiqa in Nineveh, which is a disputed area separately under the control of the Kurdistan Region's security forces and Iraqi Security Forces.
"Elsewhere in Kurdistan, the Company is about to spud its first well at the Baeshiqa license. Baeshiqa contains two undrilled structures with multiple target reservoirs in the Cretaceous, Jurassic and Triassic," revealed the statement.
The company still sees Kurdistan as a promising market.
"With USD 1 billion in financial assets, including more than USD 600 million in cash and the balance in marketable securities and treasury shares, we are well-positioned to grow our footprint in Kurdistan and Norway with the drill bit and the acquisition of producing assets," added Mossavar-Rahmani.
The Kurdistan Region is highly dependent upon the oil and gas sector for revenues. Its income was, therefore, nearly halved with the loss of Kirkuk’s oil fields that were taken over by Iraq last October.