Norwegian oil company DNO has announced a significant production increase from its two fields in Zakho, located in the Duhok province of the Kurdistan Region. Despite the closure of the Iraqi-Turkish oil pipeline, the company projects a 70% rise in production for 2024. According to DNO’s annual report, the combined output from the Tawke and Peshkhabur fields is expected to reach an average of 78,615 barrels per day (bpd) in 2024, up from 46,276 bpd in 2023.
The production increase comes as a result of enhanced operational strategies rather than the addition of new wells. The Tawke field is forecasted to produce an average of 29,153 bpd, while the Peshkhabur field’s daily output is expected to reach 49,626 bpd. DNO has utilized previously drilled wells to boost production and has extended operational hours at over 20 other wells. Additionally, the company has implemented a technique involving injecting gas into the wells to increase pressure and enhance oil extraction.
The increase in production occurs amidst the suspension of Kurdistan oil exports through the Turkish port of Ceyhan, which has been halted since March. The closure of the pipeline forced DNO to sell its oil directly from the Peshkhabur terminal.
DNO holds a 75% share in both the Tawke and Peshkhabur fields, with the remaining 25% held by the Kurdistan Regional Government. However, the company’s output from the Bashir field has significantly declined. The Bashir field, which previously produced an average of 224 bpd in 2023, is projected to yield just 5 barrels per day in 2024. Following a series of inspections, DNO began rehabilitation efforts on parts of the Bashir field in late 2024 and is now strategically planning its future operations there. DNO controls 64% of the Bashir field, with the remainder held by the Kurdistan Regional Government and Turkish Energy Limited.
