Oslo, 9 March 2021 – DNO ASA, the Norwegian oil and gas operator, today reported receipt of USD 42.4 million net to the Company from the Kurdistan Regional Government (KRG), of which USD 31.9 million represents DNO’s entitlement share of January 2021 crude oil deliveries to the export market from the Tawke license in Kurdistan.
Of the balance, USD 4.3 million is an override payment equivalent to three percent of gross January 2021 Tawke license revenues under the August 2017 receivables settlement agreement and USD 6.2 million is a payment towards the Company’s arrears of USD 259.0 million relating to withheld payment of Tawke license 2019 and 2020 entitlement and override invoices.
Monthly entitlement and override payments were withheld early last year by KRG which was hit by lower oil revenues and economic dislocations triggered by the Covid-19 pandemic. After a four-month hiatus, entitlement payments were resumed in March 2020 and override payments have now resumed with the January 2021 payment.
The arrears payment is the first received under a KRG plan that, as from January 2021, if average Brent prices in any month exceed USD 50 per barrel, one-half of the incremental export revenue will be paid to the Tawke partners and shared prorata to their interests in the license.
DNO operates and has a 75 percent stake in the Tawke license with partner Genel Energy plc holding the balance.
DNO ASA is a Norwegian oil and gas operator focused on the Middle East and the North Sea. Founded in 1971 and listed on the Oslo Stock Exchange, the Company holds stakes in onshore and offshore licenses at various stages of exploration, development and production in the Kurdistan region of Iraq, Norway, the United Kingdom, Netherlands, Ireland and Yemen.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.