RAK Petroleum plc holds 44.94 percent of DNO ASA through a subsidiary.
DNO is a Norwegian oil and gas operator focused on the Middle East and the North Sea. Founded in 1971 and listed on the Oslo Stock Exchange, DNO holds stakes in onshore and offshore licences at various stages of exploration, development and production in the Kurdistan region of Iraq (“Kurdistan”), Norway, the United Kingdom (“UK”), the Netherlands and Yemen.
DNO’s growth comes through smart exploration, cost effective and fast track development, efficient operating techniques and strategic acquisitions.
At 30 June 2022, DNO held interests in 87 licences in five countries on two continents in the Middle East and North Sea regions and had one of the largest market capitalisations among oil and gas companies listed on the Oslo Stock Exchange. DNO’s principal producing assets and reserves are in Kurdistan where it holds two licences, in Norway where it holds 74 licences and in the UK where it holds 10 licences. Licences are also held in the Netherlands (two licences) and Yemen (one licence).
DNO continues to develop a pipeline of new business opportunities with a focus on its core Middle East and North Sea regions. It actively pursues growth opportunities in exploration, development and production assets, both organically and through potential mergers and acquisitions. DNO announced in January 2022, following the reporting period, that it had been awarded participation in 10 additional exploration licences in Norway, of which three are operatorships, under Norway’s Awards in Predefined Areas (“APA”) 2021 licensing round.
DNO remained profitable during the first half of 2022, reporting operating profit of USD 317.0 million for the half-year to 30 June 2022 compared to an operating profit of USD 127.3 million in the same period a year earlier. DNO’s revenues of USD 700.0 million for the half-year 2022 (of which USD 448.1 million were from Kurdistan and USD 251.9 million from the North Sea) were up 98 percent from the same period a year earlier due mainly to the increase in world oil and gas prices and regular payments from Kurdistan of current invoices and arrears.
DNO exited the half-year with a cash balance of USD 800.6 million; partial bond redemptions brought its interest-bearing debt to USD 658.0 million at midyear, giving DNO a net positive cash position.
Arrears from Kurdistan, which stood at USD 259 million at yearend 2020, were reduced to USD 87 million as of 30 June 2022, excluding interest.
Gross production at the Tawke license averaged 106,900 barrels of oil per day (“bopd”) during the second quarter, of which Peshkabir contributed 62,300 bopd and Tawke 44,600 bopd, the latter representing the first quarterly production increase since 2015 at this legacy field as new wells are drilled, workovers conducted on existing ones and gas injection continued.
Of total Kurdistan production, 80,400 bopd were net to DNO’s interest. North Sea net production averaged 11,600 barrels of oil equivalent per day (“boepd”), bringing the Company’s total quarterly net production to 92,000 boepd.
In the second quarter, four new production wells were brought onstream in the Tawke license with three at Tawke and one at Peshkabir. Together with wells drilled in the first quarter, natural field decline has been arrested and reversed, including at Tawke, raising DNO’s full-year projection to 107,000-109,000 bopd.
In late December 2021, the DNO-operated Baeshiqa license development was approved by the Kurdistan Regional Government (“KRG”). The project represents DNO’s first new field development in Kurdistan since the start-up of Peshkabir in 2017, and as with Peshkabir, DNO is fast-tracking production, targeting organic growth in Kurdistan overall. Following government approvals, DNO commenced trucking of production in mid-June from the Zartik-1 discovery well for export at an average rate of 600 bopd. Production from the well has been choked back as DNO targets zones with lower gas-to-oil ratios to avoid flaring. Development of the license continues with the drilling of Zartik-2 and Zartik-3, to be followed by Baeshiqa-3 in the fourth quarter.
In the North Sea, DNO is positioned to grow as new production comes on stream. Currently, DNO is involved in the ongoing Fenja field development and the DNO operated Brasse field development progressed into front end engineering and design ahead of planned project sanction by year-end 2022. DNO continues to evaluate Iris/Hades, Alve Gjøk, Orion/Syrah and Trym South discoveries for project sanction.
DNO remains an active North Sea explorer with three more exploration wells to be drilled this year in addition to the four already drilled in the first half of 2022, one of which, Kveikje (DNO 29 percent), is considered a likely commercial discovery.
In Kurdistan, DNO continues to produce what are among the lowest cost barrels in the global oil and gas industry while the North Sea offers high quality exploration opportunities. With a record-high operational spend of USD 800 million planned in 2022, DNO remains committed to explore for and produce oil and gas in a commercially attractive but also socially responsible and environmentally sensitive manner.
Following a resumption of DNO’s dividend policy, a dividend of USD 9.8 million was received from DNO in late 2021 and another of USD 10.0 million was received in March 2022. These fourth and fifth dividend receipts bring the total dividends received from DNO since 2018 to almost USD 50 million.
RAK Petroleum plc’s Executive Chairman, Bijan Mossavar-Rahmani, is also Executive Chairman of the Board of Directors of DNO ASA.
09.13.2022DNO Extraordinary General Meeting Approves Share Capital Increase
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08.15.2022Mandatory Notification of Trade