DNO is bucking the global trend of slashing spending plans for 2016: it intends to nearly double capex this year. Of course, this is largely due to the extent to which the firm slammed on the brakes in 2015 due to payment concerns in its core Kurdistan operations and the conflict in Yemen. While capex was nudging $300mn in 2014, it dropped to a miserly $50.7mn last year. Despite this, rising output from DNO’s KRG assets meant the company’s overall working interest production rose from 68,900 b/d to 88,400 b/d. However, spending cuts led to KRG production declining in the fourth quarter of the year (see main story).
The majority of this year’s capex is planned for DNO’s flagship Tawke field in the KRG, according to the Q4 results conference call. Other spending is slated for the Peshkabir field in the KRG, as well as the Hayah-1 exploration well at Oman’s onshore Block 36, which it plans to spud by end-February. It is also considering drilling a development well at its offshore Block 8 in order to increase oil and gas output from West Bukha field. (CONTINUED - 374 WORDS)