DNO's Strategic Stance on Iraq-Turkey Pipeline Resumption
Norway's DNO chooses not to ship oil through the Iraq-Turkey pipeline despite its reopening after a two-year hiatus. The company continues direct sales to Kurdistan and has not signed a new agreement on exports. Operations in the Tawke area remain unaffected, with buyers organizing their exports independently.
- Country:
- Norway
Norwegian oil firm DNO announced it would not resume shipments through the Iraq-Turkey pipeline despite the recent reopening after a two-year pause. The company's decision stems from the need for more clarity on debt payments, opting instead for continued direct sales to Iraq's Kurdistan region.
The announcement follows confirmation from Iraq's oil ministry officials regarding the pipeline's reactivation through collaboration between the federal government, the Kurdistan Regional Government, and eight oil companies. DNO refrained from signing the new tripartite agreement but expressed satisfaction with the return of exports from the Kurdistan Region to global markets.
Executive Chairman Bijan Mossavar-Rahmani emphasized DNO's commitment to maintaining its current selling strategy, supported by the buyers' independent arrangements for export. This move aligns with DNO's operations in the Tawke licence, which remain robust despite ongoing sales and export negotiations.
(With inputs from agencies.)
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