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DNO Updates Yemen Operations

Source: www.gulfoilandgas.com 6/24/2014, Location: Middle East

DNO ASA, the Norwegian oil and gas operator, announced that its wholly-owned subsidiary DNO Yemen AS ("DNO") has issued force majeure notices to Yemen's Ministry of Oil and Minerals for Block 32 Howarime ("Block 32") and Block 43 South Howarime ("Block 43"). DNO had previously invoked force majeure for Block 47 South Hood ("Block 47") in September 2013.

DNO has temporarily suspended production from Block 32 and Block 43. Production from the two blocks averaged 1,600 barrels of oil per day ("bopd") on an aggregate company working interest basis (3,400 bopd on an aggregate gross basis) prior to suspension.

Access to and conduct of operations on these blocks have been restricted since late last year as a result of blockades by local groups restricting movement of equipment, supplies and contractors. On 22 June local labor unions initiated unilateral actions that have led to work stoppages at Block 32 and Block 43, including administrative staff.

The declaration of force majeure has been made in accordance with the provisions of the production sharing contracts for these blocks and suspends DNO's obligations until the impediments to safe, secure and sustained operations are removed.

A DNO spokesman stated that the company is committed to resuming operations in Yemen where it has been active since 1998 and is engaged with the government and the unions to resolve the outstanding issues.

DNO ASA is an Oslo-listed, Middle East and North Africa focused oil and gas company holding stakes in 20 blocks in various stages of exploration, development and production both onshore and offshore in the Kurdistan Region of Iraq, the Republic of Yemen, the Sultanate of Oman, the United Arab Emirates, the Tunisian Republic and Somaliland.

For more information about Oil and Gas in Yemen visit Yemen Projects Database

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