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OIL AND GAS
Kurdish operations unaffected by Iraqi violence, Oryx Petroelum says
by Daniel J. Graeber
Calgary, Alberta (UPI) Jul 7, 2013


DNO lifts work stoppage at Yemeni oil fields
Oslo, Norway (UPI) Jul 7, 2013 - Norwegian energy company DNO International said Monday it resumed oil production from Yemen, ending a two-week hiatus.

"DNO ASA, the Norwegian oil and gas operator, today announced resumption of oil production from Block 32 Howarime and Block 43 South Howarime in the Republic of Yemen," it said in a statement.

DNO suspended operations there June 24 after local labor unions took unilateral action to stop work at the Howarime and South Howarime reserve areas in the country.

Access to the area had been restricted and the company last month issued force majeure notices to the Yemeni Ministry of Oil and Minerals, which frees it from its contractual obligations because of circumstances beyond its control.

With a 16-year track record of operations in Yemen, the Norwegian company said it was committed to resuming operations in the country and resolving the issues with labor unions.

DNO last declared force majeure in Yemen in September.

Canadian energy company Oryx Petroleum said Monday its operations in the Kurdish north of Iraq were unaffected by violence in the rest of the country.

The Sunni-led Islamic State of Iraq and Syria declared an Islamist state in parts of Iraq in June after taking control of key cities in the north of the country. The northern provinces that make up the semiautonomous Kurdish region have been shielded from much of the violence.

"Our operations remain largely unaffected by the security situation in northern Iraq," Oryx Chief Operating Officer Henry Legarre said in a statement. "We continue to vigilantly monitor the situation and implement measures to mitigate risks."

Production from the Demir Dagh reserve area in the Kurdish north of Iraq started June 12. Production stands at around 4,000 barrels per day and Oryx said the field produced 38,000 barrels total last month.

Gross production should reach 25,000 bpd by the end of the year as operations proceed, the company said.

The company in June sold its first volumes of crude oil from the Demir Dagh reserve area to the domestic market.

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