Tawke oil flowing despite pipeline blast

DNO ASA, Oslo, said oil production from Tawke field in the Kurdistan region of Iraq continues despite shutdown of the pipeline that carries Iraqi crude from Kirkuk to Ceyhan, Turkey, on the Mediterranean.

An explosion hit the frequently sabotaged export line as Turkish warplanes escalated attacks against Kurdish militants in northern Iraq.

DNO said it was able to sustain Tawke production by switching from exports to local sales. It recently reported a doubling of the field’s production capacity to 200,000 b/d (OGJ Online, May 6, 2015).

Before the pipeline explosion, Tawke was producing an average 157,000 b/d. Of that, 134,000 b/d was transferred to the Kurdistan Regional Government (KRG) for export, and 20,000 b/d was sold locally. DNO is processing 3,500 b/d at its Tawke refinery.

In a statement, DNO said it is in discussions with Kurdistan’s Ministry of Natural Resources over the split between export deliveries and local sales, payments for prior and current exports, and revenue allocation covering local sales paid directly by buyers.

“In the interim, in line with other operators, DNO has curtailed new capital investments and is considering further cutbacks in operating costs,” it said.

DNO holds a 55% interest in the Tawke production sharing contract. Partners are Genel Energy International Ltd. and the KRG.

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