At that time, Clyde, Norsk Hydro and Oranje Nassau BV had decided to withdraw from the block, as they considered the reserves to be too small to justify economic development.
By year-end 2000, DNO had brought the Tasour field into production, and since then, five additional fields have been brought into production, within a year of their discovery.
Keeping momentum
“Yemen is a good example of how we are prepared to be a proactive, sustainable and efficient operator, using the minimum level of resources and taking small steps to build up competence and technology as required. Besides, our small teams operating in remote areas are able to move from exploration to production with a minimum of handover and thus loss of momentum,” says Tore Lilloe-Olsen, Corporate Head of Exploration.
DNO is highly acclaimed as a joint venture partner contributing to the country’s wealth; the Production Sharing Agreements entitle Yemen to a substantial part of the oil revenues.
Our policy is to always be the operator in a joint operation, based on a Production Sharing Agreements with the local authorities, entitling them to more than 70 per cent of the profits.
We were fortunate to strike oil and get a substantial amount of production within record time. It is therefore not surprising that DNO’s reputation, as an efficient operator has been very good since their successful start.
DNO operates 70 wells
Today DNO operates about 70 wells distributed among four blocks in the eastern part of the country in the Hadramawt Governorate, an area famous also for its historical and cultural value. The wells are situated on high mountain plateaus, creating an impressive sight, but with equally difficult infrastructure.
“Operating in these areas can be quite challenging, especially for newcomers. However, our staff has extensive knowledge and experience in all our operations, including seismic acquisition, drilling and production,” says Colin Kramer, Country Manager for DNO Yemen AS.