DNO, one of several independent oil companies working in Kurdistan, says its production of 11,191 barrels a day in July would be cut completely in August by KRG for its studies.

The firm says the KRG is reviewing the “licensing, compliances and uniformity of procedures” applied to small topping plant owners in the area, in order to better regulate the supply of crude oil and the quality of products.

Oil supplies will resume by late August or early September, according to DNO, which adds that it has initiated a data acquisition programme to update its reservoir management of the field.

In 2007, DNO turned down a $700m bid by a large unnamed international oil company to buy its assets in Kurdistan (MEED 28:8:07).