DNO ASA started an orderly shutdown of its operated oil fields in the Kurdistan region of Iraq 4 days after it was instructed to temporarily cease deliveries to the Iraq-Turkey Pipeline destined for the Mediterranean port of Ceyhan.
The shutdown follows an arbitration ruling in favor of Iraq against Turkey for exporting Kurdish oil without Baghdad’s approval, DNO said in an updated release Mar. 29 (OGJ Online, Mar 27, 2023). DNO had diverted oil production to storage tanks, but capacity is limited, it said.
Tawke and Peshkabir fields averaged combined production of 107,000 bo/d in 2022, representing a quarter of Kurdistan’s total exports. Peshkabir production was halted Mar. 28. Plans have been drawn up to conduct deferred maintenance, the company said. Tawke production shutdown has begun but will take an additional day to complete given the larger number of wells spread across some 10 km, the company continued.
Prior to shutdown, the Iraq-Turkey Pipeline carried some 400,000 b/d of Kurdish oil and another 70,000 b/d of Iraqi oil for export to Mediterranean and other refineries.
DNO operates the Tawke license containing Tawke and Peshkabir fields with 75% interest. Genel Energy plc holds the remaining 25%.