OP Hawler Kurdistan Ltd., the Forza Petroleum Ltd. subsidiary operating in the Kurdistan Region of Iraq, shut in production from the Hawler license following the shutdown of the Kurdistan Oil Export Pipeline related to an arbitration decision of the International Chamber of Commerce impacting exports by the Kurdistan Regional Government through the port of Ceyhan in Turkey.
With Hawler storage nearing full capacity, Forza suspended production from the license area, the company said in a release Mar. 27.
A statement from the Federal Government of Iraq indicates that exports from the port may only resume with the consent of the Federal Government of Iraq.
According to Forza, public reports indicate that officials from the different governments involved are in discussions to agree on terms to restart oil exports from the Kurdistan Region. The talks build on those in recent months to resolve issues between the Kurdistan Region and the Federal Government of Iraq, including the development of a new oil and gas law, Forza said.
Forza Petroleum is operator of the Hawler license area with 65% working interest. The license has yielded oil discoveries in four areas, three of which are contributing to production while appraisal and development activity continues.
In its 2022 financial and operations update Mar. 16, the company detailed additional development activities at Hawler infrastructure, noting continuing construction of the gathering system to serve the western flank of the license area and civil works for drilling pads and additional flowlines throughout the area.
The company’s $68.3-million capital budget for 2023 includes extending 3D seismic data coverage for the Hawler license area and completing installation of processing infrastructure and pipelines connecting Banan field and Zey Gawra field to Hawler production infrastructure at Demir Dagh field.
