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DNO raises share in 2 PSAs in Iraq's
Kurdistan Region by 15 pct to 55 pct each
28.12.2006
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December 28, 2006
OSLO (AFX) - DNO ASA said it has concluded an
agreement with the Kurdistan Regional Government,
where its working interest in both the Dihok and the
Erbil Production Sharing Agreement areas will rise
by 15 pct to 55 pct in each project.
In exchange, DNO will assume full responsibility for
the funding of both the operations.
The Dihok PSA in the northern part of Iraqi
Kurdistan region, while the Erbil PSA is to the
south of Dihok.
In an update on activities in Northern Iraq, DNO
said adjustments have been made to the Dihok PSA
area, some areas at the eastern boarder have been
removed in return for receiving some new acreage to
the south. One area has been relinquished but no
further relinquishments will be required until June
2011.
Installation of a pipeline to connect Tawke oil
production to the main northern pipeline has begun,
and around 8 kilometres has been installed of a
total of 42 km.
DNO said its central processing facilities has the
capacity to deliver around 50,000 bopd of the Tawke
crude oil quality. DNO therefore plans to speed up
development drilling within the Tawke area.
The full rig capacity (3 rigs) will be dedicated for
the most part of 2007 to Tawke. A total of 18
development wells are planned to be drilled in 2007,
which includes both oil producers and water
injectors.
DNO noted successful results achieved from Tawke 1
and 1A discovery wells, but said but no oil flow
rates were achieved at Tawke 2. DNO said it will now
explore Tawke 4 well as a dedicated oil producer,
located some 0.8 km to the north-east of Tawke 1.
Tawke 3 well is at an exploration and appraisal
stage.
Referring to its Khanke project, it said no oil flow
was achieved at Khanke 1 well, but the costs are
recoverable from future Tawke oil production under
the cost oil entitlement.
DNO managing director Helge Eide said: 'With the
significant progress that has been made on the Tawke
Early Production project, we should be ready to
produce the first oil from Tawke during first
quarter of next year. Achieving this important near
term target will mark another important milestone to
KRG and DNO.'
afxnews com
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