Norwegian oil company DNO doubles stake in Bashiqa oil field

ERBIL (Kurdistan 24) – Norwegian oil and gas operator DNO ASA will double its stake in the Bashiqa oil field after the Kurdistan Regional Government approved its acquisition of oil giant ExxonMobil’s remaining 32 percent in the license.

ExxonMobil is considering exiting Iraq and Baghdad is seeking buyers for the company’s stake in "West Qurna" oil field.

Earlier this year, ExxonMobil agreed to sell its 32 percent interest in the Bashiqa license in the Kurdistan Region to DNO, and the Norwegian company said Tuesday that the KRG had approved the deal.

The joint venture comprises DNO as operator with a 64 percent interest, the Turkish Energy Company with a 16 percent interest and the KRG with a 20 percent carried interest.

"This acquisition and plans for fast-track development underscore our belief in the potential of the Bashiqa license and more broadly our long-term commitment to Kurdistan,” Bijan Mossavar-Rahmani, DNO's Executive Chairman, said.

“Once we get the green light from the authorities to proceed, first production will be a matter of months rather than years,” he added.

In 2017, DNO announced it had reached an agreement with ExxonMobil to join the Bashiqa project in the Kurdistan Region.

“As consideration for both acquisitions DNO has covered ExxonMobil’s share of exploration costs since January 2019 and the seller will receive payment of USD 15 million,” DNO said.

The 324-square-kilometer Bashiqa license is located 60 kilometers west of Erbil.

Bashiqa, located in the Nineveh Province, is a disputed territory between the KRG and Iraq currently under Peshmerga control.