DNO Injects Fresh Momentum Into KRG Oil Sector With Acquisition

Iraqi Kurdistan is experiencing a mini revival of its oil and gas sector as financing from Russian state-firm Rosneft has provided the funds to ease investor concerns.

In the latest indicator of the reinvigoration of Iraqi Kurdistan’s oil sector, Norwegian independent DNO on 8 September agreed to buy half of ExxonMobil’s stake at the Baeshiqa license. Following completion, DNO will operate the block with 32% net interest, ExxonMobil will retain 32%, the nascent state Turkish Energy Company (TEC) will have 16%, whilst the KRG will retain its customary 20% carried interest.

Already by far the largest producer in Kurdistan, DNO says it will drill a first exploration well on the block in the first half of 2018. KRG output is vital to DNO as it is on track to provide 97% of its working interest production this year (see chart).


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