Norway's DNO restarts oil production from Kurdistan after drone attacks

DNO, a Norwegian company, has resumed oil production in its Tawke, and Peshkabir, fields, in Iraq's semiautonomous Kurdistan region. Production was halted in this area last month because of drone attacks.

Last month, officials from the energy sector said that repeated drone attacks on oilfields around the region reduced crude production, including other companies', by between 140,000 and 150,000 barrels a day.

DNO reported that no one was injured but surface processing equipment and an oil tank at Tawke, were damaged.

DNO released a statement with its earnings report for the second quarter. "On a trial basis, DNO resumed production at Tawke early in August. Peshkabir restarted later that month," DNO stated.

DNO's Oslo listed shares increased 11% at 0734 GMT.

DNO said that while months of repairs are still ongoing, the company has increased gross production to test levels, which is 55,000 barrels equivalent per day (boepd). This was split roughly evenly between the Tawke field and the Peshkabir field.

The company, who holds 75% of the Tawke licence, which includes the Tawke, Peshkabir and other fields, stated that it wanted to increase the production in Kurdistan to 100,000 boepd on a long-term basis. The remaining 25% is held by its partner Genel Energy.

Gulf Keystone Petroleum (another Kurdish oil company) announced on August 13th that production had been resumed at the Shaikan field, which was also targeted by drones. (Reporting and editing by Terje Solsvik, with Nerijus Adomiaitis)

(source: Reuters)