Turkey stopped pumping 450,000 barrels per day of Iraqi crude through the Iraqi-Turkish pipeline from the border area of ”Fishkhabur” to the Turkish port of Ceyhan on March 25, after the International Chamber of Commerce issued a ruling in an arbitration case in favor of Iraq.
Four days later, DNO announced the cessation of oil production from the Tawki and Bishkabir fields, which produced a total of 107,000 barrels per day in 2022.
“Until exports are resumed and payments for previous and current oil sales are regular, DNO cannot provide any forecasts for Kurdistan’s production for the full year,” the Norwegian company said in a statement on Thursday.
On April 18, the company said that it expects total production from Kurdistan to be below 100,000 barrels per day, which it had previously expected, after it announced recording production of 94,720 barrels per day for the first quarter.
DNO now plans not to operate any active exploration rigs in the Tawke license, which includes the Tawke and Bishkabir fields, in the second half of this year, compared to four rigs at the beginning of the year.
The company owns a 75 percent stake in the “Taoke” license, while its partner, Genel Energy, owns 25 percent.
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 define many aspects of the agreement.
Türkiye must also agree to resume oil flows.
DNO production in the Kurdistan region of Iraq represents about 80 percent 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 earlier, with operating profits in Kurdistan falling by more than half to $63.2 million.
In turn, “Genel Energy” canceled its production expectations for 2023 on Thursday, saying that it was no longer valid for advertisement in light of the closure of the pipeline between Iraq and Turkey since March.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 will issue new forecasts once the pipeline reopens and investment plans are confirmed.
It also lowered its forecast for capital expenditures in 2023.
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