DNO ASA has increased Kurdistan output to 113,700 b/d in this year’s third quarter, resulting in 12% uplift in DNO-operated Tawke and Peshkabir fields from the prior quarter. The increase—the result of quick turnaround, low cost well interventions, and startup of the first enhanced oil recovery project in Iraq’s Kurdistan region—is reversing production declines triggered by oil market convulsions in the wake of COVID-19, the company said Oct. 29 (OGJ Online, Mar. 19, 2020; May 27, 2020)
Both fields have outperformed expectations, and DNO projects replacement of a significant share of its reserves produced this year in Kurdistan, even as the company scaled back drilling of new wells to meet a one-third budget reduction in response to lower oil prices and a 4-month payment hiatus in Kurdistan.
Across the portfolio, company working interest production in the third quarter increased 9% over the second quarter to 97,900 boe/d, of which Kurdistan contributed 80,200 b/d and the North Sea added 17,700 boe/d. DNO expects to exit the year with Kurdistan and North Sea production at third quarter levels.
The Peshkabir-to-Tawke gas capture and reinjection project, in operation since mid-year, is continuing to cut gas flaring and greenhouse emissions by half at Peshkabir to 7 kg CO2 equivalent for each boe produced, while unlocking additional oil at Tawke (OGJ Online, July 30, 2020). To date, 2 billion cu ft of otherwise flared gas have been reinjected with positive reservoir response, adding up to 5,000 b/d.
Two exploration wells are scheduled for fourth-quarter 2020 with Polmak already drilling in the Barents Sea (DNO 20%) and Røver Nord to spud shortly in the Northern North Sea (DNO 20%). The wells will be followed by an active exploration program in 2021 including wildcat wells at Gomez in the Southern North Sea (DNO 85%) and Edinburgh cross-border (UK-Norway) in the North Sea (DNO 45%).
Following the latest UK licensing round, DNO was awarded four licenses (two operated) all with previous discoveries.
