DNO has announced certain amendments to its PSC contracts in the Kurdistan Region of Iraq.
The Tawke PSC contract area has now been extended to include an area to the west of The Tawke Field including the West Dohuk Structure, increasing DNO's working interest in this structure by 15 % to 55 %. In return for this extension of the Tawke PSC contract area DNO will pre-relinquish most of the Dohuk area, except for the Summail Prospect and the Summail Extension area in the southern part of the current Dohuk contract area. In addition all Petroleum Costs incurred within the Dohuk area to date will be recovered from the Tawke
The test production from Tawke has been an important factor for preparing export of oil from Tawke. The reservoir information acquired during the test production to date has provided essential information in order to optimize the production strategy and reservoir management for maximizing recovery of oil from the field.
During the temporary halt in test production reported last month DNO has initiated an extensive data acquisition program for acquiring new reservoir pressure data across the field during shut-in and subsequent start-up.
The test production has also allowed DNO to test and commission the Central Processing Facilities (CPF) at Tawke, and the 42 km 12' pipeline connecting the CPF to the location of the tie-in point at the Northern strategic pipeline system was commissioned earlier this year.
KRG has advised DNO that test production will recommence next week and equipment is now being installed in several wells to monitor the pressure behavior during the next period of test production.
KRG has also authorized DNO to proceed with the remaining activities in preparation for export. This includes preparatory work for the physical tie-in to the Northern strategic pipeline and to perform a compatibility study of the Tawke oil for comparison with the other crude oil qualities currently being transported through the pipeline
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