DNO Acquires Exxon's Baeshiqa Stake in Kurdistan (Iraq)
Norwegian oil & gas company DNO ASA has entered into an agreement with Exxon Mobil Corp. to acquire its 32% interest in the Baeshiqa license located in the Kurdistan region of Iraq. The financial terms of the deal have not been disclosed. The transaction doubles DNO’s operated interest in the license to 64%, with an 80% paying interest.
DNO originally acquired a 32% operated interest in the license from ExxonMobil in 2018. Other partners in the license include Turkish Energy Co. (TEC) and the Kurdistan’s regional government, holding 16% and 20% interests, respectively.
The Baeshiqa license covers an area of 324 sq. km located approximately 60 km west of Erbil and 20 km east of Mosul. The license contains the Baeshiqa and Zartik structures and three wells, namely Baeshiqa-1, Baeshiqa-2, and Zartik-1. DNO has demonstrated proof of concept of producing through temporary test facilities, having delivered 15,000 barrels (bbls) of 40° API oil and 22° API oil for export from the Baeshiqa-2 and Zartik-1 wells respectively. The license partners plan to continue an exploration and appraisal program on the license while fast-tracking early production from existing wells in 2021. Gross 2C contingent resources attributable to the license are estimated at approximately 43 million barrels of oil (MMbbls).
“By increasing our stake in the Baeshiqa license now, we demonstrate our belief in its ultimate potential. Following the stabilization of oil prices and export payments in Kurdistan, DNO is stepping up spending on new opportunities,” said Bijan Mossavar-Rahmani, DNO’s Executive Chairman.
Dual-listed on the OSE and OTCMKTS, DNO operates across in the Middle East, North Africa and the North Sea, and currently holds a portfolio of interests in Kurdistan, Yemen, Norway, and the UK. In addition to the Baeshiqa license, DNO also operates the Tawke license in Kurdistan.
The completion of the transaction remains subject to customary government approvals.