Turkey stopped pumping 450,000 barrels a day of Iraqi crude through the Iraqi-Turkish pipeline from the “Fishkhabur” border area to the Turkish port of Ceyhan on March 25, after the International Chamber of Commerce issued a decision in an arbitration case in favor of Iraq.
Four days later, DNO announced the shutdown of oil production from the Tawki and Bishkabir fields, which produced a total of 107,000 barrels per day in 2022.
“Until exports resume and payments for previous and ongoing oil sales are regular, DNO cannot provide any forecast of Kurdistan’s production for the full year,” the Norwegian company said in a statement on Thursday. communicated.
On April 18, the company said it expected total production from Kurdistan to be less than 100,000 barrels per day, which it had previously expected, after announcing the recording of a production of 94,720 barrels per day for the first quarter.
DNO now expects no active exploration rigs in the Tawke license, which includes the Tawke and Bishkabir fields, in the second half of this year, down from four rigs at the start of the year.
The company holds a 75% stake in the “Taoke” license, while its partner, Genel Energy, holds 25%.
Baghdad and the Kurdistan Regional Government of Iraq signed an interim agreement on April 4 to resume oil exports from Turkey, but the two sides have yet to work out many aspects of the deal.
Turkey must also agree to resume oil flows.
DNO’s production in the Kurdistan Region of Iraq accounts for approximately 80% of its net oil and gas production.
The company’s operating profits fell in the first quarter of the year to $155 million from $236 million a year ago, as operating profits in Kurdistan more than halved to $63.2 million. dollars.
For its part, “Genel Energy” canceled its production forecasts in 2023, saying that they were no longer valid for the announcement given the closure of the pipeline between Iraq and Turkey since March.
The company, which focuses its activities on the Kurdistan region of Iraq, said it would release new forecasts once the pipeline reopens and investment plans are confirmed.
It also lowered its capital spending forecast in 2023.
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