DNO Clarifies Reports on Iraq Projects, Contracts with KRG
DNO International ASA
Tuesday, July 01, 2008
DNO has received a number of inquiries about the content in an article published in the Norwegian newspaper, Dagbladet, regarding news published in various international media on June 30, 2008.
The article refers to news that there will be bids opened for projects in Iraq to a pre-qualified list of international oil companies, and that DNO is not on this list. The Company has therefore considered it appropriate to make some clarifications to the misrepresentations presented in this article.
One of DNO's key strategies during the past ten years has been not to compete with the larger oil companies for participation in larger E&P projects. This has been a successful strategy and the Company is currently holding an extensive portfolio of E&P licenses which has been the basis for DNO's growth both in oil reserves and production during the past 2-3 years, and the Company is well positioned for further growth going forward.
DNO entered into contracts for exploration, development and production of hydrocarbons with the Kurdistan Regional Government in June 2004, and the Company has within a very short period of time developed an extensive operation in the Kurdistan Region of Iraq ranging from exploration, drilling, field development and production. We believe that our contracts with KRG provide a unique opportunity for growth to the benefit to the region and the country as a whole, but also to DNO, and our primary focus and commitments in the country will therefore be on these operations in the short to medium term.
For this reason and in line with our overall strategy DNO decided not to pursue other opportunities in Iraq at this stage, and has therefore not made any efforts to be pre-qualified for the projects currently being opened for bids in other areas of Iraq. Therefore, the news published in various international media on Monday, June 30, that DNO is not on the list of pre-qualified bidders for new projects in Iraq has no relevance to the Company's contracts with KRG.