Norwegian oil company DNO International ASA said
Friday it expects oil production to increase to 60,000 barrels per day
in
December from its Tawke oil field in the semi-autonomous region of
Kurdistan,
Iraq. In November, the field produced 42,798 barrels of oil per day.
Production from the Tawke field fell significantly this autumn, but the
company
says it will increase again in December.
"Being the operator, we have a pretty good feeling with the production
numbers. This is not rocket science," DNO International's communication
director Tom Bratlie said, adding that Tawke produced more than 75,000 barrels
per day at its 2011 high. Production was reduced in August "to ensure we
didn't exhaust the wells by producing too fast."
Bratlie said that the Iraqi authorities has not paid DNO International on a
regular basis for its oil exports through the Fish Kabour oil pipeline to Turkey.
A steady or even increased production from the Tawke field will only be in
place "once we get a permanent payment solution so that we can be sure
that our investments pay off," Bratlie said.
About 85% of DNO's production comes from the Tawke field, according to Bratlie.
The company is now drilling another well to find out if there is more oil in
the northern part of the field. In 2012, DNO International plans to increase
the Tawke production capacity to 100,000 barrels of oil per day.
"We believe we can increase production to 200,000 barrels per day in the
long term," Bratlie said, adding that big investments would be needed, but
that with the field's low production costs, there will be "no
problem" to raise the money required.
At 1153 GMT Friday, DNO International stocks traded 0.47% lower at NOK7.39.