Norwegian company retains two blocks in sultanate; reports second quarter loss
- Company exits blocks 30 and 31 in northwest Oman
- Oman production drops in second quarter
- Net loss reported on oil price drop
DNO has withdrawn from onshore oil exploration blocks 30 and 31 in northwest Oman, the Norwegian company revealed in its second-quarter results.
The company retains the offshore Block 8 and onshore Block 36 in Oman, having also withdrawn from Block 30 earlier this year.
Block 8 is an offshore area off the Musandam Peninsula in the Strait of Hormuz containing the Bukha and West Bukha fields. The asset produced an average of 9,076 barrels of oil equivalent a day (boe/d) in the second quarter 2015, down from 15,282 boe/d in the same period of last year.
DNO said it is considering a new development well to increase West Bukha oil and gas production. The company is also identifying targets for an exploration well on Block 36 in 2016.
DNO, which also has production assets in Iraqi Kurdistan and Yemen, reported a net loss of $39.9m for the second quarter of 2015 compared with a net profit of $44.4m in the same period of last year.
Although production increased year on year, the company was hit by significantly lower oil prices and the suspension of production due to the conflict in Yemen.