DNO launches oil facility deal in Iraqi Kurdistan

14 January 2014

Norwegian firm DNO operates the Tawke and Jeribe fields in northern Iraq

Norway’s DNO hopes to award a contract in February for the construction of two new early production facilities (EPFs) in the Kurdistan region of northern Iraq.

Bids are due to be submitted on 24 January and DNO hopes to award the contract by the middle of February, according to sources close to the project.

DNO launched the tender on 29 December. The company plans to build a new 50,000 barrel-a-day (b/d) EPF at the Tawke field near the border with Turkey, taking total capacity at the field to 150,000 b/d by the end of the year.

The new EPF will be located on a site adjacent to an existing 100,000 b/d production facility. Associated gas will be vented through the existing flare system The project also includes a new 10,000 barrel storage facility.

DNO also plans to build a 15,000 b/d EPF at the Jeribe formation of the field. There are currently no facilities at the field, so the scheme will also require inlet manifolds, along with gas and water separation units, flaring facilities and storage for 1,000 barrels of crude.

These will be engineered, supplied, installed and operated by the winning contractor for an initial period of 12 months. After this, the contract may be able to extend the lease period for 6 months or purchase the facility.

DNO expects the contractor to achieve first oil production within nine months of the contract award.

The company estimates Tawke contains more than 700 million barrels of total recoverable crude oil reserves. DNO has a 55 per cent share in the production sharing contract, along with UK/Turkish joint venture, Genel Energy.

The semi-autonomous Kurdistan Regional Government (KRG) plans to begin independent crude shipments through a new oil pipeline to Turkey by the end of January. This will include quantities from the Tawke and Taq Taq fields.

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