A DNO worker at an oil storage facility in the Kurdistan Region. File photo: AFP
ERBIL, Kurdistan Region — Norwegian energy company DNO announced on Thursday it has received nearly $60 million from the KRG for oil deliveries from November and because of an August settlement agreement.
"DNO ASA, the Norwegian oil and gas operator, today reported receipt of USD 54.73 million from the Kurdistan Regional Government as payment for November 2017 crude oil deliveries to the export market from the Tawke license," it stated.
Tawke is an oil field in the Kurdistan Region.
The funds will be shared between DNO and Britain’s Genel Energy "pro-rate to the companies' interests in the license."
Genel reported on Wednesday a 40 percent replacement of proved (1P) reserves at Taq Taq oil field.
“The 40 percent replacement of 1P reserves at Taq Taq follows the success of well TT-29w, and reflects the stability in cash-generative production that we have seen from the field in the second half of 2017,” stated the company’s chief executive, Murat Ozgul.
DNO also announced that in a separate payment $4.7 million was received from the KRG "representing three percent of gross Tawke license revenues during November, as provided for under last August's receivables settlement agreement."
DNO operates and has a 75-percent interest in the Tawke license, which contains the Tawke and Peshkabir fields. Combined production from the two fields in November averaged 105,546 bpd.
a boost in its investments in the Kurdistan Region for 2018 after reporting high revenues in late 2017 and having resolved its payment dispute with the KRG.
Based on the strong 2017 results, DNO plans to hike its spending in the Kurdistan Region by 50 percent in 2018 to $250 million net.
The KRG has said its revenues were nearly halved after the loss of Kirkuk and other disputed area oil facilities.
Iraqi government Spokesperson Saad al-Hadithi told Baghdad Today News that Baghdad will not cover the gross payments
due to oil companies that have signed agreements with the Kurdistan Region, but will require new contracts signed with the central government on February 9.