Norway-based oil company DNO has announced a revision of its oilfield production-sharing deals with the Kurds of Northern Iraq to reflect Iraq’s new oil laws.

The “milestone” agreement on production gives DNO 40 percent in the new Dohok and Erbil licenses. Dohok is now two licenses, the Tawke oilfield (DNO 55 percent) and the remaining acreage area.

The company also cheered over its Hawler No. 1 exploration well flow-testing 9,000 barrels of oil per day and 11 million standard cubic feet per day from an open hole tapping of Jurassic-age rock. Hawler 1 looks set to be DNO’s second development after Tawke.

The Kurdish Regional Government is the other party in production-sharing, but it will appoint a third interest at an undisclosed time. Kurdish Minister for Natural Resources, Dr. Ashti Hawrami, was quoted as calling DNO “a long-term friend of the Kurdistan Region”.

He said all Kurdistan contracts with foreign companies have now been reviewed in light of Article 54 of Iraq’s new Oil and Gas Law, which required the review.

Under the new PSC deal, DNO will be entitled to 60 percent of the revenues up to a cap of $484 million in order to recoup costs. Thereafter, it’s understood to be 55 percent of revenues.

Tags: DNO