Kurdistan based oil producer DNO struck an optimistic tone in its third quarter results, but, stressed that a timetabled release of US$1bn owed to oil companies would be needed if it is to keep up investments.
DNO revealed that production averaged 152,507 barrels of oil equivalent per day (boepd) during the third quarter, representing a 30% increase in the year to date.
It is the operator - and a 55% stakeholder - of the Tawke field which flowed an average of 145,184 bopd in the three month period, and provided 120,633 bopd into the export pipeline.
The company estimates Tawke’s annual production is worth around US$2bn, based on current run-rates and oil prices.
DNO highlight that it received payments totalling US$30mln (US$22mln net to the company) from the regional government for exports from Tawke and it generated US$24mln from sales in the local market, giving the company third quarter revenue of US$46mln.
It comes after the KRG began making regular oil payments for exported crude to cover operators’ costs, and pledged to increase payments in 2016 in order to address a backlog of arrears for past deliveries.
DNO says the level of revenue payments remained below its contractual entitlement, whilst acknowledging that the due receivables were now growing at a slower rate.
"With the worst of the oil price crisis behind us, we have sharpened our focus on monetizing our share of Tawke production, including exploring new marketing arrangements," said Bijan Mossavar-Rahmani, DNO executive chairman.
He added: "Regular export payments and a timetable for recovery of around US$ 1 billion in Kurdistan receivables are key to resuming Tawke investment necessary to reverse natural field decline and sustain production.”
London listed Genel Energy (LON:GENL) owns a 25% interest in Tawke, along with its operated producing oil field Taq Taq.