Kurdish authorities are negotiating on the export license with Baghdad on behalf of D.N.O.
Edi said that after obtaining an export license the company might move quickly to increase its oil production in Iraq from 7 thousand barrels to about 30 thousand barrels a day on average in the first two months in 2008.
He added “We have the production capacity of wells ranging between 90 thousand and 100 thousand barrels per day and the export facility can accommodate 50 thousand barrels per day. As soon as we start exporting, we can increase our exports to 50 thousand barrels per day and get 60% of them.”
The ratio of 60% is the share of D.N.O from the production of Tauki field in the Kurdish area in northern Iraq. The company had extended a pipeline linking Tauki to the Iraqi northern pipeline, which extends to Turkey.
Magni Norman, the managing director responsible for operations of D.N.O in Iraq, said that the company has other alternatives to export besides the Turkish pipeline. He added that D.N.O installations lie at a distance of only 45 km from the pipeline stretching across northern Syria to the Mediterranean Sea. He said there is another option is to pump oil south to the port of Basrah and then to the Persian Gulf; however, all export tracks need to obtain permission from Baghdad.
The total uncertain potential of D.N.O production in northern Iraq ranges between 1.5 and 2.5 billion barrels of oil equivalent and D.N.O gets between 0.6 billion and 1.0 billion barrels out of that production under a production-sharing agreements with the regional authorities in Iraqi Kurdistan.
Even now D.N.O sells its share of Iraqi oil in the local market in local prices.
Source: Iraq Directory
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