Norway’s DNO ASA has partially resumed manufacturing on the Tawke oil discipline it operates within the semi-autonomous Kurdish area in northern Iraq at the same time as the primary export pipeline stays shut.
DNO restarted manufacturing at Tawke final month and output is averaging about 40,000 barrels a day, based on an organization assertion. DNO stated it had restarted the sphere to conduct properly integrity checks and maintained output attributable to robust native demand. The close by Peshkabir discipline stays closed.
Worldwide corporations working within the Kurdish area have been pressured to chop output after a funds dispute between Iraq and Turkey reduce off the primary export route. A lot of the barrels produced in Iraq’s north, which accounts for a few tenth of the nation’s general manufacturing, are piped to the Turkish port of Ceyhan on the Mediterranean.
“There isn’t any gentle on the finish of the export pipeline,” DNO Government Chairman Bijan Mossavar-Rahmani was quoted as saying within the assertion. The corporate is promoting half of Tawke’s output to the Kurdish authorities, with the remainder going to native merchants, who’re taking the oil by truck. DNO stated it’s getting about half as a lot of the oil because it did earlier than the pipeline closure.
Turkey halted flows on the pipeline in March after an arbitration court docket ordered it to pay about $1.5 billion in damages to Iraq for transporting oil with out Baghdad’s approval. The arbitration between the 2 nations was the end result of a long-running dispute between Baghdad and Erbil, the seat of the Kurdish regional authorities, over income from oil gross sales.
Restarting the pipeline will possible be on the agenda throughout an upcoming go to by Turkish President Recep Tayyip Erdogan to Baghdad. The Iraqi authorities introduced the go to with out saying when it is going to happen, whereas the Turks have but to verify a visit. Ankara needs to barter a settlement earlier than reopening the hyperlink, folks accustomed to the matter have stated.