DNO, a Norwegian exploration company which accounts for a large portion of oil production in Kurdish Iraq, said it continued to make operational progress but was struggling financially as it awaited payment from the Kurdistan regional government (KRG).
The company said its gross production in the third quarter was 124,396 barrels of oil equivalent per day (boepd), mostly coming from its flagship Tawke field in Kurdish Iraq.
The company did not give a separate volume for Tawke, but last month it said that exports from the field to Turkey by the KRG for its own account were averaging about 90,000 barrels per day (bpd). It added local sales, from which the company derives revenue, had decreased to 29,960 bpd during the third quarter and were currently down to an average 20,000 bpd in mid October.
“The reduction in local Kurdistan sales contributed to a drop in third quarter operating cash flow to US$25 million,” DNO said. “The company recorded an operating loss of $41.6m on revenue of $115.7m following a one-off charge for impairments as it continues to cut costs.”
The company, which is 42.8 per cent owned by RAK Petroleum, is among the operators in the region getting exasperated with the KRG over a lack of payment.
In its earnings statement, DNO noted that the KRG had last week said it would begin to pay back billions of dollars in arrears as exports through Turkey had surged to 300,000 bpd. Initially, the government said it would disperse $75m this month to operators.
“We are of course very pleased that increasing exports, importantly from Tawke, are enabling Kurdistan to meet its financial needs at a very difficult time and to begin to allocate to DNO and other producers our contractual share of export revenues,” said Bijan Mossavar-Rahmani, DNO’s executive chairman.
The KRG said it hoped to make further regular payments to clear its arrears and allow the additional investment needed to meet its goal of ramping Kurdish production up to 1 million bpd by end of next year.
DNO said operating profit for the first nine months of the year was $43.6m. It said drilling of additional wells continued without interruption during the quarter at Tawke, and a stabilising security environment had allowed the resumption of a field expansion programme, although with some delay.
Costs related to Tawke development totalled $41.7m in the latest quarter.
In Oman, DNO said it would drill the first exploration well on Block 34, as planned, next year.
In Tunisia, there were some promising results on Jawhara-3, with the completion there of the first of several exploration and appraisal wells.
DNO shares were down more than 4 per cent at about 17.80 Norwegian kroner in Oslo on Thursday afternoon.
amcauley@thenational.ae
Follow The National's Business section on Twitter
About RuPay
A homegrown card payment scheme launched by the National Payments Corporation of India and backed by the Reserve Bank of India, the country’s central bank
RuPay process payments between banks and merchants for purchases made with credit or debit cards
It has grown rapidly in India and competes with global payment network firms like MasterCard and Visa.
In India, it can be used at ATMs, for online payments and variations of the card can be used to pay for bus, metro charges, road toll payments
The name blends two words rupee and payment
Some advantages of the network include lower processing fees and transaction costs
Killing of Qassem Suleimani
Killing of Qassem Suleimani
How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
Points to remember
- Debate the issue, don't attack the person
- Build the relationship and dialogue by seeking to find common ground
- Express passion for the issue but be aware of when you're losing control or when there's anger. If there is, pause and take some time out.
- Listen actively without interrupting
- Avoid assumptions, seek understanding, ask questions
Messi at the Copa America
2007 – lost 3-0 to Brazil in the final
2011 – lost to Uruguay on penalties in the quarter-finals
2015 – lost to Chile on penalties in the final
2016 – lost to Chile on penalties in the final
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.