The return of oil production in the Kurdistan Region of Iraq has been one of 2023’s more surprising energy sector developments. The region’s independent oil sector appeared to be on its knees after Turkey in March closed the crude oil export pipeline to its Mediterranean port of Ceyhan, shutting off volumes from international markets (MEES, 31 March). But while that pipeline remains firmly closed, key IOCs in the region have achieved a remarkable turnaround, and one which is making Baghdad’s efforts to comply with Opec+ cuts increasingly difficult.
The scale of the turnaround is best exemplified by the DNO-operated Tawke license on the border with Turkey. DNO announced on 19 December that production has averaged almost 90,000 b/d so far this month and is projected to average 65,000 b/d for Q4 as a whole. The December figure is within touching distance of pre-March levels of around 105,000 b/d (see chart). (CONTINUED - 664 WORDS)
