DNO is looking at exporting oil from Kurdistan region of Iraq via Syria

DNO Explores Exporting Kurdistan Oil Through Syria to Access Mediterranean Markets

Norwegian Oil Producer Considers New Export Routes Amid Market Challenges

OSLO, Oct 29 (Reuters) - Norway's DNO, the largest oil producer in the Kurdistan region of Iraq, said on Thursday it was looking at a possibility to export oil via Syria, with the aim of selling at a higher price than at the local market.

Potential Export Opportunities Through Syria

"There are possibilities now that have opened up for movements of oil to the Mediterranean through Syria, which was previously closed due to the civil war there... We are looking at those possibilities," DNO's Executive Chairman Bijan Mossavar-Rahmani told a call with investors and analysts.

Current Sales and Price Disparity

DNO currently sells crude from its Tawke and Peshkabir fields into the local market at prices which averaged $38.5 per barrel in the third quarter. It was up from $31.2 a year ago, but still well below international benchmarks.

Efforts to Access International Markets

"We continue to work hard to get our oil back into international markets or connect it to international prices in some manner," Mossavar-Rahmani said.

Plans to Boost Output and Export Options

DNO said on Thursday it planned to step up drilling activity to boost output from the two fields, which produced a combined 77,621 barrels of oil per day on a gross basis in the quarter.

Alternative Routes and Regional Dynamics

"A lot of the southern Iraqi oil is now moving up by trucks to the pipelines of Turkey, but also to Syria for export," Mossavar-Rahmani said. "So we are actively look at how else we can move our oil."

Revival of Iraq-Syria Pipeline

In July, the United States backed a proposal to revive the crude oil pipeline from northern Iraq to Syria's Mediterranean coast, but it can take years and billions of dollars of investments to put in operation, sources familiar with the project have told Reuters.

(Reporting by Nerijus Adomaitis, editing by Terje Solsvik)