DNO opts out of Iraq–Turkiye pipeline restart, keeps local sales

Shafaq News – Erbil

DNO ASA, the largest international oil producer in Iraq’s Kurdistan Region, said on Friday it has no immediate plans to export crude through the Iraq–Turkiye pipeline, which is set to resume operations after a two-year halt.

The announcement came a day before exports are expected to restart on September 27 under a tripartite agreement between Iraq’s federal government, the Kurdistan Regional Government (KRG), and eight oil companies. The deal places the state-run North Oil Company in charge of exporting crude from Kurdistan via the pipeline, which carries oil from Kirkuk across Turkiye to the Mediterranean port of Ceyhan.

DNO declined to join the agreement, citing the need for further clarity on how outstanding debts will be settled. “DNO is pleased that exports of oil from the Kurdistan Region have been unlocked and will now flow to international markets,” Executive Chairman Bijan Mossavar-Rahmani said in a statement. “We have elected not to engage directly in exports at this time and will continue to sell our oil on a monthly, cash-and-carry basis to our buyers at a per barrel price in the low USD 30s.”

The Norwegian operator, which holds a 75 percent stake in the Tawke licence covering the Tawke and Peshkabir fields, partners with Genel Energy, which owns the remaining 25 percent. According to the company, about 30,000 barrels per day (bpd) will remain available to DNO and Genel after allocating some 38,000 bpd to the KRG for exports.

While DNO itself has not signed the tripartite agreement, the company noted that its private buyers could still choose to transport its crude through the export pipeline.