DNO ASA began diverting oil production from its operated Kurdistan fields to storage tanks on Mar. 25 following instruction by the Kurdistan regional government to temporarily cease oil deliveries to the Iraq-Turkey pipeline for export.
The move follows an arbitration ruling in favor of Iraq against Turkey and its state-owned pipeline operator BOTAS for transporting Kurdish oil without prior approval from Baghdad. Ruling details have not been disclosed, DNO said in a release Mar. 27.
The storage tanks can accommodate ‘several days’ of production from Tawke and Peshkabir fields, DNO said, also noting from public reports that authorities in Ankara, Baghdad, and Erbil are in discussions on agreements to allow oil exports to resume through the pipeline to Ceyhan, Turkey, on the Mediterranean.
Prior to shutdown, the pipeline carried about 400,000 b/d of Kurdish oil and another 70,000 b/d of Iraqi oil to global markets, DNO said.
DNO operates the Tawke license containing Tawke and Peshkabir fields with 75% interest. Genel Energy plc holds the remaining 25% (OGJ Online Mar. 23, 2023).