Activity in Iraqi Kurdistan’s critical oil and gas sector is drying up at a remarkable pace as IOCs put expansion plans on hold and halt drilling. This year was supposed to see more than 30,000 b/d in production capacity added (MEES, 24 January), but now the latest projections from IOCs point towards annual production declines of at least 40,000 b/d.
This week saw DNO, operator of Kurdistan’s largest foreign-operated license, Tawke, provide updated 2020 guidance pointing towards a sharp decline. Q1 output averaged 115,000 b/d, but with 2020 drilling canned output is slated to slump to 100,000 b/d for Q2 and an average of 90,000 b/d for the second half of 2020, exiting the year at just 85,000 b/d, down 26% on Q1 (see chart). (CONTINUED - 958 WORDS)