2011: An eventful DNO year
The year of 2011 was an eventful year for DNO as the company continued to move towards a new growth cycle.
The year began with a major milestone success for the company as the Kurdistan Regional Government (KRG) and Iraqi federal authorities agreed to commence crude oil exports from Kurdistan in January. Export began the following month from Tawke at a test volume level of 10,000 bopd as technical preparations began to further increase production to 50,000 bopd.
The first export payment to DNO was announced in May by the KRG. That same month, DNO achieved a record high working interest production of 51,315 barrels of oil per day from Tawke. In total, gross production at DNO operated facilities in Kurdistan and Yemen reached a company record of approximately 85,000 bopd in May for the two countries combined.
In June, Bijan Mossavar-Rahmani was elected new Chairman of the Board at the Annual General Meeting, and the Oslo Stock Exchange announced the inclusion of DNO International in the OBX index. That same month, DNO confirmed the first payment of USD 103.7 million for February and March crude oil exports from Kurdistan.
DNO and RAK Petroleum PCL announced a proposed merger of RAK´s MENA operating subsidiaries into DNO in July. This same month, the estimate for ultimate P50 recoverable reserves at the Tawke field were upgraded from 306 to 636 million barrels based on thorough work and assessment of new reservoir data.
In August, DNO sold its shareholding in Det norske oljeselskap ASA for NOK 521 million and achieved an accounting gain of around NOK 255 million. Adding to the company’s success were record-breaking operational results in the second quarter.
The DNO-RAK merger was approved by both companies shareholders in extraordinary general meetings in November. As the eventful year of 2011 came to a close, DNO and RAK Petroleum continued the strategy of integrating the two organizations to build a stronger and more aggressive DNO, focusing on the MENA region and with ambitions to list the company on the London Stock Exchange in 2012.
2010
During 2010, Tawke crude oil was delivered to the local market in Kurdistan. In December 2010, the partners in Block 47 in Yemen, with DNO as operator, committed to the first phase field development of the Yaalen field. DNO divested all of its treasury shares in March and raised new equity in November, bringing the cash position up to approximately NOK 1.4 billion at year-end.
2009
During 2008 and into 2009, the Tawke first phase development and the tie-in to Iraq’s northern pipeline were finalized and in May 2009 DNO was given formal notice from KRG to start export from the field. However, the export period only lasted a few months, and the export was stopped in September – awaiting agreement between the federal government in Baghdad and the KRG. During 2009, DNO divested part of its shares in Det norske oljeselskap and the ownership share fell below 20 percent.
2007
In June 2007 test production commenced from the Tawke field in Kurdistan, and DNO drilled its first well as operator on the NCS at the Lie prospect in PL 305. Later that year, DNO listed its subsidiary NOIL Energy ASA on the OTC, and entered into an integration agreement with Pertra ASA, to create a new oil company “Det norske oljeselskap ASA” (DETNOR). DNO changed its name to DNO International ASA.
2006
An important breakthrough for DNO came in 2006 with the Tawke oil discovery in the Kurdistan region of Iraq. DNO opened an office in Dubai the same year, from where the Northern Iraq operations are managed. DNO also participated in a discovery at the Goliat field in the Barents Sea (Norway), adding significant volumes to the reserve and resource base.
2004
In 2004, DNO entered into production sharing contracts (PSC) with the Kurdistan Regional Government in Northern Iraq, as one of the first international companies in the region. Further on, 9 new licenses in Norway and Yemen were secured during the year. DNO delivered significant value to the shareholders in 2005 through two dividend payments in cash and treasury shares. 2005 was also an important year for the Yemen operations, with startup of production from the Nabrajah field.
2000
In 2000, the presence in the Norwegian part of the North Sea was re-established with five licenses, and in 2002 the Norwegian authorities approved the Company as operator. In Yemen, the first production was initiated in 2000 from the DNO-operated Tasour field. In 2003, DNO divested its assets in the UK and certain Norwegian assets through a sale and purchase agreement with Lundin Petroleum.
1996
In 1991, DNO sold all its petroleum licenses, and in order to appear as a pure investment company, changed its name to DNO AS. A fluctuating market resulted in short-term strategies and various interests tried to control the company. In 1995, Berge Gerdt Larsen bought 30 percent of the shares and with new management and board the company changed its strategy to focus on development of small oil fields and tail-end production. In 1998, the company became operator and full owner of the Heather Block (UKCS), and expanded its activities into the Middle East where it started operations onshore in Yemen.
1984
The oil prices sky-rocketed from USD 12 to over USD 30 from 1978 to 1980, saving DNO, which began its battle for a piece of the action on the Norwegian Continental Shelf (NCS). In 1984, DNO was one of four companies to be awarded license interests on the NCS by the Norwegian Parliament.
1971
DNO ASA was founded in 1971 under the name Det Norske Oljeselskap AS to engage in petroleum exploration and production activities. It was the first Norwegian oil company to be listed on the Oslo Stock Exchange. DNO’s exploration and production activities in the first ten years were at the British and the Dutch part of the North Sea, and in 1974 the first revenues were generated from the Heather field on the UKCS. The company was also involved in drilling activities, building mini refineries in the US, and investing in several rigs in collaboration with the Odfjell group and their deep-water rigs. As the operations in the US failed in 1977, the financing of other activities became difficult, and in 1979, the number of employees was therefore reduced to five people.