DNO International

DNO International ASA
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Type	Allmennaksjeselskap
Traded as	OSE: DNO
Industry	Petroleum
Founded	1971
Headquarters	Oslo, Norway
Key people	Helge Eide (President and managing director), Berge Larsen (Chairman)
Products	Oil and gas exploration and production
Revenue	NOK 1.252 billion (2010)
Operating income	NOK 156.8 million (2010)
Profit	(NOK 282.9 million) (2010)
Total assets	NOK 5.393 billion (end 2010)
Total equity	NOK 2.109 billion (end 2010)
Employees	565 (end 2010)
Website	www.dno.no

DNO International ASA is an independent international upstream oil and gas company. The company has its headquarters in Oslo, Norway and is listed on the Oslo Stock Exchange. DNO operates exploration licenses and producing assets in Yemen, the Kurdistan region of Iraq, Mozambique, Equatorial Guinea and the UK. DNO holds a 11.66% share in Det norske oljeselskap (DETNOR).

Operations

Iraq

In June of 2004, DNO entered into Production Sharing Contracts (PSC) with the Kurdistan Regional Government in Northern Iraq. As one of the first international oil companies to enter this highly prospective region, DNO holds a key position in developing the local oil industry. DNO is the operator for the areas covered by the contracts.

The drilling of exploration well, Tawke #1, which was completed in June 2006, discovered the Tawke field. This represented an important breakthrough in Northern Iraq as an oil discovery was confirmed by DNO’s very first exploration well within the area. Based on the positive result from this well and further successful delineation drilling, DNO has completed a fast-track field development. Test production from the Tawke field commenced in June 2007, marking another important milestone to DNO and their partner KRG (Kurdistan Regional Government).

Yemen

DNO entered Yemen in 1998 and was approved as operator later that year. The company quickly expanded the operations in the country through successful exploration and fast-track development. Since then DNO has further expanded its operations in Yemen, and is currently holding interests in five assets, all located in the prolific Sayun-Masila Basin.

DNO is operator on Block 32, 43, 47 and 72. Dove Energy is operator on Block 53 where DNO holds a 24.45% partnership. Block 32 has the production fields Tasour and Godah. Block 43 has the production field Nabrajah and Block 53 has the production fields Sharyoof and Bayoot.

Mozambique

DNO is the first oil company to have started frontier exploration work. DNO has a 50% interest in the onshore Inhaminga Block.

United Kingdom

In the United Kingdom DNO has a 50% interest exploration license P1067.

Equatorial Guinea

In Equatorial Guinea DNO has a 5% ownership in Block P, operated by Ocean.

History

In 1971, DNO International ASA (‘DNO’) was founded 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.

In 1974 the company received its first revenue though its interest in the Heather field on the British continental shelf.

DNO was one of four Norwegian companies to be awarded licenses on the Norwegian continental shelf, along with Norsk Hydro, Saga Petroleum and Statoil,

In 1997 DNO acquired the entire Heather field and became its operator. A year later DNO entered Yemen. In 2000 DNO re-entered the Norwegian sector and acquired working interests in the Jotun and Glitne fields, and the PL 203 license. The same year DNO made an oil discovery in Yemen (Sharyoof-field).

In 2003, DNO decided to enter into an agreement Lundin, for the sale of all of the issued share capital of DNO Britain Limited and Island Petroleum Developments Limited, and the sale of certain assets in Det Norske Oljeselskap AS.

In October 2007, an integration agreement was entered into in order to combine the Norwegian DNO assets with Pertra ASA creating the second largest Norwegian oil and gas company, Det norske oljeselskap ASA. Today, DNO holds an 11.66% equity interest in Det norske oljeselskap ASA.

Following the creation of Det Norske Oljeselskap ASA, DNO changed its name to DNO International ASA.

In 2008 DNO shifted focus from exploration towards increased production and near-term development. DNO responded to the change in the financial environment by initiating measures to reduce investments significantly in the short to medium term. The Tawke Phase 1 development was completed and commenced the remaining work to prepare for full-scale production from the field.

Permanent development of the Bayoot field in Yemen was initiated with expected completion at the end of 2009.

In March 2009, the tie-in of the Tawke pipeline to Iraq’s northern pipeline system was completed and DNO was ready for full-scale production.

On 10 May 2009, DNO was given formal notice by KRG to commence export from the Tawke field. On 1 June, DNO started export, but due to lack of payment mechanisms, the export sales was halted in October 2009 and partly replaced with local sales.