As oil revenues dry up in Iraqi Kurdistan, the band of small-to-medium sized firms in the region is bearing the brunt. Not only do these firms face perilously low oil prices but they rely on payments from the cash-strapped KRG, which is already seeking to restructure the process and seemingly still unable to meet less onerous commitments (MEES, 22 May and MEES, 17 April).
Key producer DNO has already slashed capex by 30%, and cut the firm’s rig count from six to two (MEES, 20 March). Output at the firm’s 115,000 b/d Tawke license (see chart 1) – the region’s biggest foreign-operated field – will likely fall accordingly, although the imminent start-up of gas reinjection may offset declines. (CONTINUED - 496 WORDS)