DNO 'Pleased' as Kurdistan Oil Exports Unlocked, Prepares for Sept. 27 Resumption
DNO announced it has been instructed to prepare for the Sept. 27 resumption of oil exports, stating it is "pleased that exports...have been unlocked." The company will deliver the KRG's 38,000 bpd share and welcomes arrangements for its own share to also enter the pipeline, supporting the project.
ERBIL (Kurdistan24) – In a resounding confirmation that a new era has dawned for the Kurdistan Region's energy sector, Norwegian oil and gas operator DNO ASA announced on Friday that it has been instructed to prepare for the commencement of oil exports through the vital Iraq-Türkiye Pipeline on September 27. The instruction, following the landmark tripartite agreement between the Kurdistan Regional Government (KRG), the Federal Government of Iraq, and international oil companies (IOCs), signals the final operational step in reopening the taps after a crippling suspension of more than two years.
DNO, the region's largest international producer, expressed its satisfaction with the breakthrough, with its leadership declaring they are "pleased that exports of oil from the Kurdistan Region have been unlocked and will now flow to international markets."
The announcement from Oslo on Friday provides the first concrete details of how the historic agreement will translate into action on the ground. According to the company, "DNO accordingly will deliver the Kurdistan Regional Government’s share of sales from the Company’s operated Tawke license, currently averaging 38,000 barrels a day, for export."
In a move that demonstrates both commercial prudence and creative support for the overarching deal, DNO has also arranged for its own share of production to contribute to the export volumes. While the company itself will continue its current practice of selling its 30,000 bpd share to local buyers, it has embraced a solution that ensures this oil also reaches global markets.
"We understand our buyers have set up their own arrangements to place oil purchased from us into the export pipeline, a move we welcome as it supports the larger export project," Executive Chairman Bijan Mossavar-Rahmani explained in the announcement.
This innovative framework allows DNO to support the landmark agreement and the KRG's strategic objectives while simultaneously securing the immediate revenue stream needed to fund ambitious new investments in the region's production capacity.
The resumption marks the culmination of what Kurdistan Region Prime Minister Masrour Barzani has called a "historic day," achieved through "tireless efforts and months of negotiation by teams on all sides."
The breakthrough, which Iraqi Prime Minister Mohammed Shia al-Sudani hailed as an "achievement 18 years in the making," was celebrated internationally, with the United States Department of State and U.S. Secretary of State Marco Rubio welcoming the deal as a crucial step for regional energy security and stability.
The Association of the Petroleum Industry of Kurdistan (APIKUR), which represents key international operators, also commended the leadership of both Prime Minister Barzani and Prime Minister al-Sudani. APIKUR spokesperson Col. Myles B. Caggins III confirmed to Kurdistan24 on Thursday that "the agreement has been signed," calling it a "win for everyone: Baghdad wins, Erbil wins, international companies win, and above all, the people of Iraq win."
As previously reported by Kurdistan24, the path to this moment has been long and arduous. Oil exports from the Kurdistan Region were halted in March 2023 following an arbitration ruling that required Baghdad's consent for shipments through the pipeline to Türkiye's Ceyhan port.
The ensuing stalemate inflicted a devastating economic toll, costing Iraq an estimated $11 million per day and depriving the KRG of its primary source of independent revenue, which led to severe fiscal pressures and challenges in paying public sector salaries. The dispute was rooted in long-standing constitutional disagreements over resource management, with many in the Kurdistan Region arguing that federal authorities were using financial entitlements as a political weapon and failing to honor the principles of federalism.
The new agreement, therefore, represents far more than a technical solution; it is a monumental political and economic achievement for the Kurdistan Region, reaffirming its constitutional rights and re-establishing its crucial role in the global energy market.
The KRG Ministry of Natural Resources announced on Thursday that exports would resume within 48 hours, with all crude being handed over to Iraq's State Oil Marketing Organization (SOMO) for management in coordination with the KRG and the IOCs.
DNO’s strategic decision to secure a predictable cash flow is directly linked to its forward-looking commitment to expanding its operations within the Kurdistan Region. Mr. Mossavar-Rahmani announced that the company has just launched a major new investment initiative, signaling deep confidence in the region's future.
“DNO has just launched a major production expansion program at the Tawke and Peshkabir fields to replace equipment damaged during the July drone attacks, followed by the drilling of eight wells in 2026 targeting production of 100,000 barrels a day,” he said. This ambitious program, which will significantly boost the Kurdistan Region's output, is enabled by the very commercial arrangement the company has chosen. “We can only support such an ambitious program with immediate, predictable and continuous flow of funds,” he stated.
By ensuring this financial stability, DNO is positioning itself to be a key driver of future growth, a strategy that its leadership believes will ultimately deliver greater rewards for all stakeholders than simply participating in the interim federal payment mechanism. The current terms of the tripartite agreement, which runs until the end of the year, will see the first payment of USD $14 per barrel (after transport costs) expected in mid-December, with the figure to be adjusted in 2026.
While DNO has opted for a different immediate path, its actions are aligned with the long-term prosperity of the region. Acknowledging the company’s strategic choice, Mr. Mossavar-Rahmani concluded on an optimistic and unified note: “Maybe looking back we will have left some money on the table, maybe not, but surely we will generate significantly greater value from the investments we are making not just for us, but for all Iraqis.”
As the oil begins to flow once more, it carries with it not just economic value, but the promise of a more stable, cooperative, and prosperous future for the Kurdistan Region and all of Iraq.
