Peregraf
Norwegian oil and gas operator DNO ASA announced on Friday that it has been instructed to prepare for the resumption of oil exports through the Iraq-Türkiye Pipeline starting 27 September 2025, following agreements reached between the Federal Government of Iraq, the Kurdistan Regional Government (KRG), and a group of international oil companies.
Under the arrangement, DNO will deliver the KRG’s share of sales from the company’s operated Tawke license, which is currently averaging 38,000 barrels per day, for export. The remaining production, representing the share of foreign contractors DNO and Genel Energy International Limited, averaging 30,000 barrels per day, will continue to be sold to local buyers under existing contracts.
“DNO is pleased that exports of oil from the Kurdistan Region have been unlocked and will now flow to international markets,” said Executive Chairman Bijan Mossavar-Rahmani.
Mossavar-Rahmani explained that while DNO will not directly engage in exports at this stage, the company will maintain its monthly cash-and-carry sales model to local buyers, at prices in the “low USD 30s” per barrel. However, those buyers are expected to place oil purchased from DNO into the export pipeline, which he described as a positive development for the broader export effort.
The agreements with Baghdad and Erbil are set to run until the end of 2025, with the first payment — USD 14 per exported barrel after transportation costs — scheduled for mid-December. That figure will be reviewed in 2026 following an evaluation of “commercial models and contracts” by a Baghdad-appointed consultant.
Looking ahead, DNO said it has launched a major production expansion program at the Tawke and Peshkabir fields, replacing equipment damaged in July’s drone attacks and preparing to drill eight new wells in 2026, with the goal of reaching 100,000 barrels per day.
“We can only support such an ambitious program with immediate, predictable and continuous flow of funds,” Mossavar-Rahmani noted. “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.”
The resumption of oil exports through the pipeline marks a significant step in restoring international market access for Kurdistan’s crude, after more than a year of disruptions that have strained both the regional and federal budgets.