Proyect To Develop To Petroleum

a dno magazine // 2012
People&projects
Plus! A responsible company // Prospective Kurdistan // The road to London // Exploring Tunisia
Full gas Exciting

ahead Oman
Introducing the gas market Modern life and
ancient traditions
Offshore Collaboration
once again Community
New assets in the DNO portfolio
projects
Education, health and sports
The Tawke field
A true
giant
A new era for DNO

The merger with RAK Petroleum and a more focused business strategy
bring promises of a bright future. To Renas Adbi Mirza and the other trainees
in Kurdistan this means even more exciting career opportunities.
dno 2012 // PROJECTS 1

Content
People & projects
|| The new DNO is a more mature company.

Managing Director Helge Eide
2 People& // dno 2012

Content
06 | Management interview 54 | Exploring Tunisia
Helge Eide and Bijan M
ossavar- DNO seizes new opportunities
Rahmani look ahead
56 | A ballooning market
12 | The DNO map Watson on the gas business
An overview of the DNO sphere
58 | Photofeature
14 | Students on board at Tawke Everyday life in the Middle East
The trainee programme yields results
66 | A different kind of tea party
20 | The jewel in the crown Some call oil ”Texas tea”. Here is how
The fledgling operation is well oiled they find it
26 | Competent and dedicated 70 | Getting the job done
DNO has a new manager Continued production in
in Kurdistan troubled times
28 | A bright future 74 | Enthusiastic shareholders
The city of Erbil is mushrooming The DNO Initiative took action
32 | Taking responsibility 76 | The new matrix
Projects that improve lives High competence, smart organizing
38 | Offshore once again 78 | Towards London listing
... in Arabian waters DNO prepares for the London
Stock Exchange
46 | Beautiful Muscat
Oman has made its mark 80 | The logic of the oil market
The analyst’s perspective
People & projects Design and production:
DNO International RedInk:

Stranden 1, Aker Brygge, Editor & text: Ingunn Solli
N-0250 Oslo Art Director: Christen Pedersen
P.O. Box 1345 Vika, Photo: Hans Fredrik Asbjørnsen
0113 Oslo, Norway Illustrations: Torgeir Sollid
Phone: (+47) 23 23 84 80 www.redink.no
Fax: (+47) 23 23 84 81 Lingu Nordic
www.dno.no Text: David John Smith
Printing: Konsis Grafisk AS
DNO International
Corporate Communications
Camilla Næristorp, camilla@dno.no

Short stories
Fun facts
Oil expressions:
The oil and gas industry is

usually divided into three
major components: Upstream,
midstream and downstream:
Upstream – The upstream oil
sector explores and produces
hydrocarbons (oil and gas). The
DNO’s new giant

companies in this business are
referred to as E&P companies.
Midstream – The Midstream
sector processes and stores,
Giant oil fields are considered those with 500 million barrels markets and transports oil
and gas.
of ultimately recoverable oil or gas equivalent. The world has Downstream – The down-
stream sector includes every-
more than 900 giant oil and gas fields, and in 2011 the Tawke thing else like oil refineries,
petrochemical plants and
field in the Kurdistan region of Iraq was upgraded and is now distribution.
One oil barrel (bbl) is 42 US
classified as a giant. Geoscientists believe these giants account gallons or 158.9873 liters.
Standard Oil began manufac-
for 40 percent of the world's petroleum reserves. turing 42 gallon barrels that
were blue to be used to
transport oil. They contained
two gallons per barrel more
than the standard used by
many other industries at the
time. The extra two gallons was
to allow for evaporation and
leaking during transport (most
barrels were made of wood).
By the early 1870’s "bbl" was
the guarantee a buyer had that
their barrel would contain 42
gallons of oil, not 40 gallons.
Monkey board is usually
about 35 or 40 feet above the
floor on the rig, near the top of
the derrick. The monkey board
is where the derrick man works
while tripping pipe.
Pig cleaning is a method to
inspect and clean long pipelines
for rust, welding draft, gravel
and water, both on land and
subsea. The pig is a 0.1-3 meter
long mechanical device sent
through the entire length of the
pipeline, sometimes through
designated pig loops to return
back from the subsea manifold.
65,000
DNO’s gross pro-
duction was almost
65,000 barrels of
oil per day (almost
40,000 bopd WI)
in 2011. Accord-
ing to BP Statistical
Review of World
Energy June 2011,
the total world pro-
duction per day is
82,095,000 barrels.

Oil seeps like this are found many
places near DNO’s Tawke field in
the Kurdistan region of Iraq.
Oil in everyday life:

Detergents are substances that act as cleansing
agents when mixed with water. Most foamless
detergents are made from oil products. The foam-
less detergents include powders and liquids used
to wash clothes and dishes in a dishwasher. Some
are made using petrochemicals, while others are
made using alcohols and ethylene oxide that are
petrochemical products.
The colour of most pen ink is the result of dyes.
A (very) brief history of oil These dyes are made from petrochemicals.
Synthetic shoes are made from a petroleum
product. Many rubber soles are also made from
Petroleum seeps have been known and ex- waterproofing and building material. petroleum. Natural rubber becomes sticky when
ploited by mankind since Palaeolithic times. The The earliest known oil wells were drilled in hot, and stiff when cold, while man-made rubber
earliest known use of thick naturally occurring China, around 350 AD, using bits attached to stays much more flexible.
crude oil (bitumen/asphalt) was by Neander- bamboo poles. The oil was burned to evapo- Car tires are made from synthetic rubber. Today,
thals, some 40,000 years ago; bitumen has rate brine and produce salt. the demand for synthetic rubber is four-times
been found adhering to stone tools used by The polish pharmacist and petroleum industry greater than for natural rubber.
Neanderthals at sites in Syria. The material was pioneer Jan Józef Ignacy Lukasiewicz built the A plastic bottle is made from the same petrochemi-
also used as early as the third millennium BC first modern refinery in 1856. Among his other cal as the fiber we call polyester. All plastic products,
in statuary, mortaring brick walls, waterproof- achievements were the discovery of how to many of the materials used to make the clothes you
ing baths and drains, in stair treads, and for distill kerosene from seep oil, the invention of wear, or the carpet you walk on, plus hundreds of
shipbuilding. According to ancient Greek his- the modern kerosene lamp and the introduction the other products we take for granted, are made
from petrochemicals.
torian Herodotus, asphalt was employed in the of the first modern street lamp in Europe.
construction of the walls and towers of Babylon, Today, the top three countries producing oil Some medicines, are manufactured from chemi-
a town situated in modern day Iraq. Herodotus are the Russian Federation, Saudi Arabia and cals, and many of these are made from petroleum
products. Acetylsalicylic acid, or ASA, is the active
also speaks of oil pits near Babylon, and to this the United States. 54.4 percent of the world's
ingredient in many of the well-known, over-the-
day you can find crude oil seeps in Iraq, where readily accessible reserves are located in the counter pain relievers. ASA is manufactured from
the population for millennia has used petro- Middle East, with 43.7 percent located in Saudi petrochemicals. One of the first uses of oil, dating
leum as a source of light and warmth as well as Arabia, UAE, Iraq, Qatar and Kuwait. back thousands of years, was as medicine.
Did you know … that the word petroleum comes from Greek "petra" for rock and latin "oleum" for oil?
Fish and meat Beloved child has many origins

market has evolved Already in the year of 1428 was “stock” a
The Stock Market has its origins quotidian term used when one referred to "sup-
from the mid-14 century, then it was ply for future use" or “sum of money", but the
a fish and meat market in the heart ultimate sense connection is uncertain. Perhaps
of London. In 1739 the first stone the notion is of the "trunk" from which gains are
of Georgian town palace Mansion an outgrowth, or obsolete sense of "money-
House was laid, when it finished in box". Reference to stock meaning "subscribed
1752 the Lord Mayor took up resi- capital of a corporation" is first recorded around
dence. The modern Stock Exchange 1600, and the expression stock, lock, and barrel,
was founded in 1801, and is located "the whole of a thing", is recorded from 1817. As
in Paternoster Square close to St the collective term for the movable property of a
London's financial district is a mixture of old and new buildings.
Paul's Cathedral. farm, it is recorded from 1510s; hence livestock.

Management interview
Highlights & the road ahead

Entering a new era
Through the merger with RAK Petroleum, DNO has transformed into a
significantly larger exploration and production company with a more focused
strategy. The company has become a player to look out for in the Middle East
and North Africa region. A new era has started for DNO.

|| My goal is for DNO to become a regional leader, and through the merger, the
company is already an important player in the Middle East. Bijan Mossavar-Rahmani

|| We are undoubtedly a more focused company. We have a more distinct
strategy and geographical focus area. Helge Eide
I
n January 2011 we noted an Will there be more mergers and acquisitions? of both production and reserves and have an
important message in the form “Yes. An oil company grows through acquisi- extremely strong platform to grow from. Fol-
of a tweet from the then Kurdis- tions and mergers in addition to organic lowing the merger we have also established
tan Regional Government prime growth. DNO will become bigger, stronger and an organizational structure that is better
minister. “Productive meeting w PM more profitable. We have already achieved geared for the future. Bijan Mossavar-Rahmani
Maliki in Baghdad. Agreed to resume much of what we aimed for. We have strength- also brings a new dimension to the company
oil exports from Kurdistan by Feb 1st, ened corporate governance, improved the bal- with his lengthy and broad experience in the
resolve outstanding issues on oil, budget.” ance sheet and the company delivered record international oil business and his large political
“It was the sort of statement we had been operational and financial results in 2011.” network in the MENA region.”
waiting for. One of the year's definite high- For Eide the merger with RAK Petroleum
lights,” says Helge Eide. was also one of last year's major events, but But some of the old DNO must still exist?
For the uninitiated: The Kurdistan region the path was at times rather rocky, and it was “Absolutely. It's important that we retain
of Iraq, where DNO is involved in large-scale not a given that the merger would succeed. what has characterized DNO throughout its
exploration and production, is perhaps the A group of shareholders were initially vocally history and that has driven its success. We
most exciting petroleum province in the world opposed to the merger of the two companies shall maintain our entrepreneurial spirit. The
today. The formal go-ahead for export was a and a lot of effort was put into addressing the ability to act quickly, the willingness to make
major step forward and marked the start of an concerns raised and providing additional infor- unconventional choices and see opportunities
eventful year for the company. mation to shareholders and the media. where others shy away – these are competitive
2011 was also the year when DNO gained “It was a good day when Bijan, through dia- advantages we shall take along with us.”
weight, muscle really, through the merger logue with shareholders, managed to secure Helge Eide has the wholehearted support of his
with RAK Petroleum PCL’s operating subsid- sound support for the merger. That Sunday chairman, who is impressed and intrigued by the
iaries, picking up exploration, development when I was in the office and was informed that strong business culture that characterizes DNO.
and production assets in the United Arab we could expect the support of the majority “Those who work here have a can-do attitude
Emirates, Oman and Tunisia. At the annual … that felt good. And when we got the strong and professionalism in everything they tackle.
general meeting in June, the company also support from 76.5 percent of our sharehold- DNO is fast paced – here one turns on a dime.
gained a new chairman of the board, the ers at the extraordinary general assembly The attitude is that anything is possible, and
charismatic and politically well-connected two days later, it was the end of an extremely the teams are proud of and take ownership
Bijan Mossavar-Rahmani, the man who has intense period. I am not for a moment in doubt of the company's successes. It is important to
successfully built international oil companies that the merger was important and right. me that DNO remains a Norwegian company,
twice before, who has been an OPEC delegate Today, DNO is a new company,” Eide says. with a Norwegian business culture,” states
and who has written a large number of books Mossavar-Rahmani.
on energy policy, and more. What does the new consist of?
“My goal is for DNO to become a regional “We are undoubtedly a more focused company. But listed on the London Stock Exchange?
leader. DNO already had a very attractive asset We have a more distinct strategy and geo- “Yes, that is our goal and it will be a decisive
base, and following the merger and the re graphical focus area. The company is also less step for the company. This will provide us
organisation and repositioning of the company, conflict-oriented and more concerned with the with a broader and deeper investor base that
we have established a very solid platform for core business. The new DNO is a more mature will facilitate potential mergers and acquisi-
rapid growth,” says Mossavar-Rahmani. company; we have become larger in terms tions. Listing on the London Stock Exchange

|| Itseveral
is of course a goal to see the company’s value increase
times compared to the current level. Helge Eide
puts us in the middle of the deal flow, but the and that is always useful.”
corporateheadquarters will remain in Oslo and “Bijan is an active chairman, very hands on.
we will be listed both in London and Oslo.” And I mean that in a strictly positive sense,”
Eide is also is of the opinion that the DNO Helge Eide adds. “We have a clear division of
culture is one of the company's strengths. responsibility between the management and
“Our way of doing business is well-received in the board and with well articulated strategies
the Middle East. We bring principles of openness, and guidelines. This is good for the company.”
a flat structure and opportunities for local staff.”
Peer into the crystal ball, Helge Eide.
How do the employees feel about the Where is DNO in 2015?
new situation? “We can grow significantly with only our current
“A merger process can create uncertainty but portfolio and by succeeding with projects we
changes will also mean opportunities. We quickly have currently planned. But the intent is not
entered an integration phase to ensure full speed only to focus on organic growth, but also to
in all processes and avoid business interruption. grow through transactions and diversification.
Now there is a new and positive energy in the It is of course a goal to see the company's value
organization. We have en even greater pool of increase several times compared to the current
highly competent associates and new career level. In 2015 I believe we will be considered to
opportunities for the company employees.” be a major player in our area. That said, DNO in
2015 will still be a fast track company with an
What do you bring to the table as chairman, entrepreneurial spirit and low overheads.”
Mr Mossavar-Rahmani? “The key to success is to do more of the
“It is important for a company to have a chair- same,” Mossavar-Rahmani concurs. “We will
man who knows where he or she wants to go hire even more skilled people, ensure that we
and can take decisive and timely decisions to have an even more empowered and strength-
get there. I believe that I have the support and ened management. But most of all, an oil
confidence of the shareholders and the neces- company must focus on exploration. Then
sary mandate to lead DNO. I also have good geologists and geophysicists can concentrate
relations in the countries in which we operate, on doing what they do best. Finding oil.”
Highlights 2011
January February March April May June
The Kurdistan Regional Govern- Export production from DNO completed a USD 240 The annual report for 2010 KRG announced a confir- DNO confirmed the first
ment (KRG) and Iraqi federal Tawke commenced million senior unsecured was released. mation of the first oil ex- payment of USD 103.7
authorities agrees to commence at test volumes of bond and through that con- port payment to the KRG million for February and
crude oil exports from Kurd- 10,000 bopd. Technical tinued to build DNO’s strong contractors. DNO achieved March crude oil exports
istan. The first announcement preparations for further financial platform. a record high working from Kurdistan. Bijan
came from the Kurdistan Prime ramp up to 50,000 In Yemen, expats were interest production of Mossavar-Rahmani was
Minister Barham Salih on twit- bopd progressed. Bijan moved to the Dubai office 51,315 barrels of oil per elected new chairman of
ter: “Productive meeting w PM Mossavar-Rahmani was because of the riots. Block 47 day in May. Gross produc- the board at the annual
Maliki in Baghdad. Agreed to re- elected member of the gave notice of Commercial tion at the DNO operated general meeting. The Oslo
sume oil exports from Kurdistan board of directors in an Discovery and the Block area facilities in Kurdistan and Stock Exchange decided
by Feb 1st, resolve outstanding extraordinary general was reduced, and became a Yemen was around 85,000 to include DNO Interna-
issues on oil budget.” meeting. development licence. bopd in May. tional in the OBX index.

|| DNO is fast paced – here one turns on
a dime. Bijan Mossavar-Rahmani
July August September October November December

DNO and RAK Petroleum DNO sold its sharehold- The boards of directors in DNO launched an Open At the extraordinary gen- DNO and RAK Petroleum
PCL announced a proposed ing in Det norske DNO and RAK Petroleum Market Partial tender eral meeting, 76.5 percent focused on integrating
merger of RAK Petroleum's oljeselskap ASA for signed the definitive Offer and bought back of the shares present votes the two organizations to
MENA operating subsidiar- NOK 521 million and documents to merge RAK around 42,500,000 own in favor of the proposed build a stronger and more
ies into DNO. Based on achieved an accounting Petroleum and DNO. DNO shares. Due to high level of merger. Two days later, aggressive DNO; focused
thorough work and assess- gain of around NOK 255 won gold in the prestigious registration for attendance the extraordinary general on the MENA region with
ment of new reservoir data, million. Record breaking “Farmandprisen” for best at the extraordinary general meeting in RAK Petroleum ambitions to list the com-
the ultimate P50 recover- operational results from “Idea & design” for the 2010 meeting, DNO had to move PCL gives overwhelming pany in London in 2012.
able reserves at the Tawke the second quarter was annual report. the meeting to a larger support to the transaction.
field were significantly presented to the financial venue.
upgraded. market.

DNO’s world
Production & exploration
Where are we?

DNO serves as operator and active licence partner in several
production and exploration assets in the MENA region.
Norway developments. DNO has further expanded its Block 8 DNO is producingoil and gas from
In the headquarters in Oslo you find the operations in Yemen and is currently holding two platforms. On the otherthree blocks
corporate functions, the subsurface teams interests in five assets, all located in the pro- the exploration and field development plans
and the administration. DNO is listed at the lific Say'un-Masila Basin. DNO has an office are under evaluation.
Oslo Stock Exchange, but has no operations in Sana’a that runs the operations.
in Norway. Ras Al Khaimah
Kurdistan region of Iraq DNO holds the offshore RAK B and RAK
Dubai In June of 2004, DNO entered into production Saleh licences and one onshore licence.
The office in Dubai is DNO's hub in the sharing contracts (PSCs) with the Kurdistan The offshore licences are being prepared
Middle East, hosting corporate technical Regional Government (KRG). As one of the for redevelopment and after encouraging
functions and the COO's administrative team. first international oil companies to enter results from seismic acquisition in 2011, the
this highly prospective region, DNO holds a company is now setting the stage for fur-
United Kingdom pioneering position in developing the local oil ther exploration onshore Ras Al Khaimah.
DNO is present in the UK with its London of- industry. DNO is operator of three PSCs: Tawke, An office is maintained in the Emirate.
fice located at St James Square. The company Dohuk and Erbil. DNO has completed one
is aiming for a listing at the London Stock Ex- fast-track field development of the Tawke field. Tunisia
change in 2012 and will consequently increase The capacity at Tawke is 70,000 bopd and DNO at present holds a 30 percent share
its presence in London with additional staff. the company is working to increase capacity of the Hammamet offshore licence and
to 100,000 bopd in 2012. DNO's operations in has also signed a prospecting permit for
Yemen Kurdistan are managed from its office in Erbil. the Fkirine licence, covering an area of
DNO entered Yemen in 1998 and was more than 2,000 square kilometres. The
approved as operator later that year. The Oman Tunis office is responsible for operations
company quickly expanded activities DNO is the operator of the offshore Block in Tunisia.
through successful exploration and fast-track 8 and the onshore blocks 30, 31 and 47. On

The Kurdistan region of Iraq
Succsessful trainee programme
BLAZING TRAILS
A dozen of the first petroleum department graduates from the Technical Institute
of Zakho have been hired by DNO, a big milestone for the newly established
department and its successful trainee programme at DNO’s oil field at Tawke.

Dawlaf, Ali, Sonia and Rena at
Tawke facilities. They are four
of twelve graduates from the
Technical Institute of Zakho's
Petroleum Department hired
by DNO thus far.

|| This is a first for ladies in the history of Iraq and Kurdistan,

and only the beginning. Tarik A. Abdullah Chalabi
M
embers of the Class of 1
2011 are now either in

the accelerating job
market in Kurdistan,
or have continued
with further studies.
Among the twelve newbies at Tawke, are the
first women ever to work permanently at a
Kurdistan oil field.
“This is a first for ladies in the history of Iraq
and Kurdistan, and only the beginning. Each year
DNO will continue to interview the class that is
graduating, an open door for both ladies, as well
as talented young men from the Zakho region
who can help the company continue to grow,”
says Tarik A. Abdullah Chalabi, DNO's Deputy
Manager in Kurdistan and a key mover and shaker
in the development of the trainee programme.
Hear me roar
The hiring of four women dissolves a cultural
and societal barrier, and has fundamentally
changed the oil business in Kurdistan. Not only
does DNO gain the expertise of young and
aspiring talents – the belief that women have
no place in an oil field is transcended.
1 Tarik A. Abdullah Sonia Saad Pols is a Zakho native who grew
Chalabi, DNO's Deputy
Manager in Kurdistan is
up with a love for mechanics and anything
one of the innovators technical. Now, she has found a niche as a
behind the trainee warehouse trainee and has the ambition to
programme at Tawke
for the students at the someday work within operations and con-
Petroleum Department. tracting. “As a woman, finding my place here

Sonia Saad Pols has
embarked on a career
in the oil industry after
graduating from the
Zakho Institute.

|| Since I was a teenager growing up in Zakho I knew that it was

my dream to work in the oil field. Ali Shaban Abdullah

1
at Tawke has been a transition, but I do feel – my family, friends and fellow students – are 2
elcome. What really helps is that my friend
w happy to see me as a DNO employee.”
and colleague Dawlaf works here as well – Operator CPF trainee Renas Adbi Mirza has
with other women on site it has been much career ambitions to be a team leader at DNO and
easier to adapt,” says Sonia confidently. knows he gets noticed – especially by his large
Dawlat Ahmed Muhamed is a young woman family that includes eight brothers and sisters as
who knows what she wants. “It was engineering well as the students still at the Institute in Zahko.
that captured my interests when I was younger, “When I was studying it was my ambition to work
something that led me to petroleum studies. with DNO, and suddenly here I am! Now we realize
Now I am a lab technician trainee and excited to that students in the petroleum department are
be here – following the path of what I learned working harder than ever – they see that our goals
as part of the Institute trainee programme. Even to become DNO employees have been fulfilled.”
now, Sonia and I have a lot of contact with
female students in petroleum studies who see Being seen
us as trailblazers and want to join us at Tawke At the Institute, the head of the Petroleum
when they graduate,” declares Dawlat. Department Alaa Hagi is pleased with the
development. He knows the programme is just
1 In 2011, DNO donated lab equipment to
Raining men in the starter’s blocks, but that the government the Petroleum Department at the Technical
Joining the ladies and the rest of the hard and DNO has given it kudos, a sure sign the Institute of Zakho. Now, the students can
charging workforce of about 300 are eight programme is on the right track nationally and practice hands-on lab experiments. Before
that, the head of the department Alaa Hagi
strapping young men from the Institute eager internationally. used YouTube to teach lab experiments.
to carve out their careers at Tawke. One of the “I have a five-year plan that includes a drilling
2 Dawlaf Ahmen Muhamed is one of four
graduates is Ali Shaban Abdullah, who radiates section in addition to refining operations and female graduates from the Zakho Institute
enthusiasm as he says, “Since I was a teenager chemical analysis. This is further down the working on Tawke field.
growing up in Zakho I knew that it was my road, but petroleum activities are only in the
dream to work in the oil field. That really came start phase in Kurdistan, and we will continue
true when I was hired by DNO in January. Now to develop in tandem with our DNO friends,”
I am a wellhead trainee, and everyone I know concludes Alaa Hagi.

The Tawke field

WELL OILED
The sun rises up over the Zagros mountain range in the morning
at Tawke oil field and operations are humming to life. Everyone is
ready for another day of production at the jewel of DNO.

The Tawke field
|| I always wanted to be in the maintenance team, and now I am. My ambition is

to become a team leader and a mechanical supervisor. Kassim Taher Baban

A
t 6:15 a.m dozens of or 300,000 barrels per day, I have learned
uniformed DNO workers that everything flows when you have the right
start their day with a hearty people and processes in place. The increase in
Kurdistan breakfast before production during the next few years is a chal-
their twelve hour shift lenge, but DNO is ready,” says Aillaud.
begins at 7 a.m. Eric Aillaud, “But there is more to DNO in Kurdistan than
the quietly gregarious DNO production man- just Tawke. Bastora-1 has shown it can produce
ager is on site. “Tawke is by far DNO’s largest and we already have early production facilities
operation. The average daily production level and a small camp established. Across the river
tested over 70,000 barrels per day last year at Benenan we know oil is there and have
– and from this year onwards we will really submitted the paperwork for further field de-
begin to see production capacity increase. velopment. At Summail, we are waiting for the
Next, capacity will be 100,000 and further on results of the activities this year that include a
Production Manager Eric
we have plans for a second pipeline and new lot of seismic testing,” he continues. Aillaud and his team look
production facilities which will allow a capacity forward to expanding pro-
duction capacity at Tawke
above 200,000 barrels per day,” says Aillaud In the pipeline during 2012.
with his infectious French accent. “A dynamic recruiting process attracts local
people, often at entry level, where they proceed
Winding road to create solid careers. Tawke is brimming with
“From the time I was a teenager, my ambition exuberant vitality – local young people wedge Facts
has been to be a part of the oil business. I their feet in the door and make the most of
don’t see myself as an adventurer, but the oil their opportunities,” says Aillaud.
business has taken me to West Africa, North “We have one fellow who started off as an
Africa, Yemen, Thailand, Indonesia, Myanmar assistant cook in 2007 – and not a particularly
and then to Dubai in 2006. There, Magne successful one at that. Now Ranj Salam is
pointed me towards Kurdistan and the DNO over at Bastora (Erbil licence) and works as a
assets here,” says Aillaud, alluding to Magne loading operator. I recognized him as a good
Normann, DNO's COO. worker and now he is moving up the ladder.
“I actually met Magne long before 2006 – He couldn’t cook – but he can handle crude
Yemen 1999 to be exact. We talked business oil,” chuckles the Production Manager.
and I helped him simplify some designs, we “Then there is a young man named Ivan Fran-
cut the Surface Facilities project costs from 18 cis, he is from Livo (a village nearby Tawke).
million to 11 million dollars. Then, years later He started off as a cleaner five years ago, and
Magne offered me the position as Production now he is a refinery operator,” he continues.
Manager and of course I accepted,” he continues.
When Eric arrived at Tawke, activities were Learning by doing
just a windswept forethought to the boom- Another bright talent at Tawke is 21-year old Kurdistan Region of Iraq
ing operation that is in place today. “Activities Kassim Taher Baban. He comes from the vil- Area: Approximately 65,000 sq km
Population: 4.7 million
were on fast track, preparation for the camp lage Kaparok in the same area as the Tawke-1
Government: Parliamentary democracy
had begun, and the central processing facility discovery well. Since he joined DNO in 2009 he Capital: Erbil
(CPF) was set to be put in place. Then early has progressed from a helper in the warehouse
in 2007 local tanker trucks began to line up to a general maintenance technician. “I always DNO in Kurdistan
and Tawke was on the oil map,” describes the wanted to be in the maintenance team, and DNO is one of the pioneers in the Kurdistan
Frenchman recalling the times gone by. now I am. My ambition is to become a team region of Iraq, which has become internation-
ally recognized as an extremely attractive
leader and a mechanical supervisor,” says Kas-
petroleum province.
Poised for expansion sim modestly. Aillaud adds, “Kassim has taught
The fledgling operation is well oiled on many himself electrical work and also knows how to Assets
levels. The export capacity is now over 70,000 fix cars. He is smart and an excellent worker.” Tawke PSC: Oil production
barrels per day, the pipeline to Fishkhabour is Aillaud prides himself on spotting talents, Tawke facilities have the sustainable capacity
primed for international distribution, and there then giving them the opportunities they to export more than 70,000 barrels a day.
The reserves at Tawke are estimated to more
is capacity for sales to the local markets. deserve. “We need to provide conditions and
than 600 million barrels, making it one of the
A well-organized workforce is in place, and the take into account culture, experience and am- world’s giant oil fields.
operation is ready for expansion. bitions – allowing people to develop. It makes Dohuk PSC: Exploration
“It doesn’t matter if production is 50, 100 us a good team,” says Eric Aillaud. Erbil PSC: Exploration

A buddy industry
PAST, PRESENT AND FUTURE

The mountainous region in Northern Iraq, Kurdistan is an autonomous
federal entity with its own local government and parliament.
Kurdistan covers about 65,000 square kilometres in Iraq.
W
hen DNO entered Kurd- Constitution. The early days were challenging, success - the first well discovered lots of oil. It
istan in 2004, the region I recall. No petroleum infrastructure existed became very clear that a new discovery was
was in essence virgin and we had to import everything from the about to be developed.
territory from an oil and outside markets.” Only two years after seismic acquisition com-
gas perspective. “DNO “Security was given the utmost importance. menced, with the King of Norway waiving at
considered commercial gains by far out- I realized that security was crucial to attract the crowds in the streets of Oslo, the Tawke oil
weighed the risks involved, and the company international service providers, to mobilize field was ready to deliver oil to the international
chose to seize the opportunity to explore parts equipment and personnel to Kurdistan; a markets. The Kurdistan team under the leader-
of the region,” says Magne Normann, who region that would be judged against poor se- ship of Tarik Chalabi in Erbil, and the subsurface
now has assumed new responsibilities as COO curity and loss of lives in the rest of Iraq. How team under the leadership of Nils Bang did an
(Chief Operating Officer) handing over his do we carry out seismic if all decline to con- excellent job,” emphasizes Magne.
“giant baby” to the new General Manager for tract with DNO? This is exactly what happened.
Kurdistan, Nicholas Atencio. All seismic contractors were contacted, but A giant is born
“Nicholas Atencio has assumed the role as nobody showed interest. We finally engaged “The legend of Tawke grew as our activities
General Manager and will continue our suc- with a Chinese contractor – their home office continued at Tawke through an on-going
cesses. Much more remains to be done, and said “no”. So, then we were back to square process of appraisal/development drilling
with Nick’s competence and dedication I feel one,” says Magne. He is, by the way, known for and collecting extensive production data. The
very comfortable that DNO will reach new never taking a “no” for an answer. existing reservoir model was adjusted with
production records in the years to come. My new input data from field test production and
new role as COO gives me the opportunity to A capable Great Wall consequently the recoverable field estimates
involve myself with company growth from a “We finally contracted with a very small Cana- doubled in value to more than 600 million bar-
wider perspective and use my past experience dian firm and commenced seismic acquisition rels – a world-class giant field,” says Magne.
from some 14 years in the Middle East to ex- on 17th May 2005 (Norway’s Constitution The federal government and the KRG al-
pand DNO into new growth areas, and repeat Day); a day all Norwegians celebrate. Contract- lowed first oil to be exported in June 2009.
successes of the past,” says the experienced ing a rig and well services were considered an DNO had become the first company in Kurdis-
entrepreneur and COO. equally hard nut to crack, and we decided to tan to export crude oil via export pipelines.
approach contractors that could provide both “No doubt Kurdistan has become very impor-
Challenging beginnings rig and well services under a single contract tant to DNO. Achievements made are a result
But before totally letting go, Magne gladly umbrella. Not many contractors have that of skilled, dedicated professionals. Kurdistan
elaborates about the past, present and the capability – the Chinese Great Wall Drilling has much more to offer, and DNO has much
future; “All PSCs were signed in June 2004; Company did. We commenced drilling in No- more to offer Kurdistan,” concludes Magne
before ratification of the new national vember 2005 with GWDC, rig #9. Immediate Normann.

|| Achievements made are a result of skilled and dedicated professionals.
Kurdistan has much more to offer. Magne Normann
After leading the growth of DNO's Kurdistan

assets since 2004, Magne Normann (seated)
has turned over the reins to Nicholas Atencio.
Magne has now taken the helm as Chief
Operating Officer.

New manager
A TRUE PEDIGREE
The new General Manager for DNO’s operations in Kurdistan is Texan
Nicholas Atencio, who takes over an exciting portfolio that spans
activities from start-up exploration to full-blown production.

S
“ tepping into this job, I feel that Engineering he embarked on a journey through ing time in the field, where the company’s
I have received a pedigreed the oil business, one that included founding his ision, planning and preparation meet the reality
v
puppy with the potential to own company Remora Energy where he braved of execution and results. We have many hard
be magnificent – my role is the highlands of Colombia as he found oil and working, dedicated employees working here in
to ensure it grows into an successfully grew his company. Kurdistan – and I want to get to know them all.”
international champion,” says When Atencio sold the company in 2007, Bijan
Nicholas with earnest enthusiasm. Mossavar-Rahmani (today DNO's the Executive Onward ho
Nicholas is a straightforward soul. He grew Chairman) recruited the inexorably driven entre- “My role, as I see it, is to participate in generat-
up a self-proclaimed army brat, one of four preneur to RAK Petroleum in Dubai. Eventually ing the vision, define the strategies to achieve
sons in a family where competition ruled at Atencio moved into the role of General Manager. this vision, translate these strategies into
home, in school and in sport. Young Nicholas “When DNO and RAK Petroleum merged I actionable deliverables and provide the ap-
was a high school student in Germany at an was asked to take over as General Manager in propriate resources, structure, and facilitation
American school and took the challenge in the Kurdistan and oversee the company’s portfolio to deliver results. My goal is to be a presence in
classroom as well as on the wrestling mat – he here – I did not hesitate one moment. This was the fields, a leader and facilitator in the office,
won the European wrestling championship a rare opportunity to directly participate in the and to develop the culture coincident with the
two times in the 105-pound category. early stages of the evolution of a world-class growth of the business unit while maintaining
“Wrestling takes place one on one – individu- hydrocarbon province,” says Atencio. the culture and branding strengths which have
als win or lose depending on their own prepa- made DNO such a successful company in a
ration. Still, each person is part of a team, with Adrenaline kick very short period of time. It is my philosophy
trainers and fellow wrestlers – where everyone What still really raises his adrenaline is the that individuals can achieve, but teams can ac-
counts on everyone else for a team victory,” chance to get out to one of the licences. “I like complish,” says he.
says the twice-crowned wrestling champion. the feeling of leaving the regional capital Erbil Atencio sees a glowing future for DNO in
and travelling out past the small villages until Kurdistan, but knows the continued success
Once in a lifetime I am out in the middle of a magnificent coun- of the business unit will require hard work,
After some years in Germany he completed tryside with stunning panoramic views. Then commitment and team effort. He believes he
high school at Columbine in Colorado – then after some hours I drive over a hill – and there has the full support and encouragement of the
going on to the Colorado School of Mines – in the distance is the pedigree puppy, full of company’s executive offices and the team in
requiting a love he has always had for earth sci- energy and eager to grow” says the Texan. place to accomplish the company’s objectives.
ences. After receiving his degree in Petroleum He continues; “I have always enjoyed spend- And he is up for the challenge.
|| It is my philosophy that individuals can achieve,

but teams can accomplish. Nicholas Atencio

A bright future
QUANTUM LEAP
The capital of the Kurdistan region of Iraq, Erbil, is a city that thrived
years before the Egyptian pyramids were built. Juxtapose this distant
past with future potential and the mind boggles.

|| This city is growing like Dubai – and I hope that my whole country of Iraq
also will enjoy the success that Erbil is seeing these days. Samy Koshnaw

A bright future
|| Erbil city has a population of nearly one

and a half million, and is still growing

T
orrential change can storm this city,
one that measures history in mil-
lennia. “Just one hundred years ago
Erbil was a small town within the
ancient walls of the Citadel – now
the city has grown to almost one
and half million living far outside the Citadel walls.
The site has been awarded UNESCO Heritage
status, it is protected and under restoration,” says
Hemin Ibrahim Ahmed, DNO’s Logistic and Pro-
curement Manager Kurdistan, who doubles as the
local history buff. “Recently, the citadel town has 3
been included as one of the 100 most endangered

cultural sites in the world by the World Monument
Fund (WMF) in New York. Efforts are also being
made to have it included as one of UNESCO's list
of World Heritage Sites,” says Hemin.
Incoming
Below the Citadel the city market is buzzing with
quotidian activity. It is Saturday and Naz Ismail
stands on the crest of a groundswell of Erbil na-
tives that come back to the city after years abroad.
“I think it is just a matter of timing, everybody
wants to come home. After ten years in Hastings in
the UK, where I worked in a hospital, the right time 1 4
for me to come back to Erbil was two years ago.

2 5
Since then I have worked at the UN as a security
guard. It is a good job, so I stay. Erbil is now my
home once again,” proclaims Naz.
In the entrepreneurial area of Empire Complex,
‘People & Projects’ met with a barista at a coffee
shop last year. Returning to Costa Rica Coffee this
year, the half-empty coffee shop has transformed
into a bustling haven for coffee-thirsty custom-
ers. “Sales are getting better all the time, and we
see more international customers as more hotels
begin to open here in Erbil. We are quite pleased,”
1 The Citadel housed the entire
says operations manager Anthony Vincaent as he city of Erbil just over a century ago,
assesses the business climate. and now the city is mushrooming
far beyond the ancient walls.
Move over Dubai 2 Erbil is growing by leaps and

Working at the Empire Complex, one of the largest bounds as building projects move
forward - and upwards. The head-
building projects in the Middle East that will see quarters building of the Empire
hundreds of buildings sprouting to the sky à la Complex, epi-centre of one of the
largest building projects in the
Dubai in near future, is city native Samy Koshnaw. Middle East.
He has worked within logistics for nine years in
Falcon Construction, the world-class engineer- 3 DNO's logistic and procurement
manager in Kurdistan, Hemin Ibra-
ing, construction and investment company that him Ahmen is also an enthusiastic
responsible for this Empire Complex – also the site history expert. Ask him anything
about the history of Erbil and he
of the new DNO offices. has got the facts.
“I cannot even begin imagine what Erbil will
be like in ten years. Each year there are so many 4 Costa Rica Coffee operations
manager Anthony Vincent likes
changes with new buildings and expansion. This city the business growth he sees here.
is growing like Dubai – and I hope that my whole
5 Falcon Construction employee
country of Iraq will also enjoy the success that Erbil Samy Koshnaw compares growth
is seeing these days,” says a proud Samy. potential in Erbil to that of Dubai.

Health, education and sports
A SHARED
RESPONSIBILITY
In 2011 DNO inaugurated cooperation with local
authorities to introduce ideas we had concerning
various community projects in support of local
health, education and sports initiatives.
I
raq has a national health system; how- tices, common ailments, disease – knowledge
ever, primary health care centres are that can save lives. We think of health as a
located where the populations exceed shared responsibility, and projects like this
5,000 inhabitants. This means that if raise community awareness – bringing people
one lives in a small remote village, com- together to share responsibility,” says the
mon medical knowledge can save lives. sympathetic doctor.
The Directorate of Health in Dohuk has As coordinator, Dr. Bakhtiyar Ahmed care-
started a regional campaign designed to en- fully picks versatile representatives to hold
lighten villagers, complemented by a standby the health awareness sessions, taking into
mobile medical team providing emergency consideration language and cultural differences.
response services. The target group for the They are responsible to communicate the
initiative are small villages in the Dohuk region, topics on the agenda that include how to deal
and around the Tawke central processing with chronic diseases (diabetes, heart disease,
facilities, where DNO operates. hypertension and asthma), health awareness
Dr. Bakhtiyar Ahmed, the coordinator for dedicated to specific groups (post menopausal
health awareness session around the Dohuk women, teenage girls, and pregnant women).
region, is genuinely concerned about the qual- DNO's project engineer in Kurdistan, Scala
ity of life and the health of the growing regional Alqasalias is the project manager for the com-
population. “DNO took the initiative to support munity support project. “I enjoy the success
our project and we said yes. Now DNO and the with this project that reaches out to the re-
Directorate are bringing health education to the gional population, raising the quality of life in
people,” says Dr. Bakhtiyar Ahmed, proudly. a way that empowers the people to take more
“The health awareness sessions are a series responsibility for their health. I look forward
of weekly gatherings that teach basic practical to continuing this work. DNO has also planned
medicine to the community – we bring the similar projects within education and sports in
villagers together to learn about hygiene prac- the region,” says Scala Alqasalias.

||
I enjoy the success with this project that reaches out to the regional
population, raising life quality in a way that empowers the people to
take more responsibility for their health. Scala Alqasalias

|| We think of health as a shared responsibility, and projects like this raise community
awareness – bringing people together to share responsibility. Dr. Bakhtiyar Ahmed

|| I am the mother of nine children, and I have found this

health awareness session very useful. Shoshen Zaya

Lovely Livo
Livo is the largest village in the Tawke area
with 200 households. It is an Assyrian village,
where most of the inhabitants have recently
moved back from Baghdad, as the prospect
of the region continues to grow. The village is
situated twenty minutes drive from the Tawke
facilities, and one hour from Zakho.
A full community hall, where women are in
the majority by five to one as compared to men,
welcomes the representatives for the health
awareness sessions. In the back of the hall,
boisterous children in their neat grey and white
school uniforms try their best to keep quiet.
A distinguished grey-haired doctor and two
female health officials from the health depart-
ment conduct the informative session. An hour
later, the health team had presented their top-
ics, the session ended and the crowd dwindled.
“This was a very enjoyable presentation. I am
the mother of nine children, and I have found
these health awareness sessions very useful,”
says Shoshen Zaya, the mother who recently 1
moved to Livo from Baghdad.

2 3
101 gifts
The village has a school with 101 pupils ranging
6-16 years of age. Though small, it is the largest
school in the area. Outside the community hall,
dozens of children run towards the elementary
school. What could be happening on this after-
noon before the big weekend? Something is up...
In the school’s courtyard the children line
up neatly. Just by the entrance there are one
hundred and one backpacks arranged in two
piles – pink and purple for the girls – red and
green for the boys. One by one the hopeful
children receive a brand new backpack filled
with precious school goodies such as pencils,
4 1 The satisfaction in the children's faces is
notebooks, scissors, and so on – by the look unmistakable as they receive their back-
on their faces their satisfaction is unmistakable. packs at Livo school.
2 Dr. Bakhtiyar Ahmed carefully oversees

Play sport the health awareness project, and views
In another community project DNO noted that health as a shared responsibility.
in the area around Tawke children and adults 3 Shoshen Zaya sees the medical informa-
are obsessed with football and even have their tion received at the health awareness ses-
sion as a tool to improve family health.
own village teams. The conditions for playing
have been poor. A new football field increases 4 Scala Alqasalias, DNO's project engineer
the enthusiasm to play sports, contributing to in Kurdistan is the project manager for the
community support project that includes
healthy bodies and minds. initiatives within health, education and sports.
Since Livo is the largest village in the area,
it has been decided to build the football field
here – one that can be used by everyone in the
area for both school sports and leisure activities.
According to DNO’s construction plan, the grass-
roots sports facility will be in place by summer.

New portfolio
Offshore facilities
Arabian waters
DNO is offshore once again. New assets in
Oman and the Emirate of Ras Al Khaimah bring
new challenges and opportunities to the company.

Khalid Al-Kharusi, from
Muscat, has worked offshore
for four years. Before he
started his job in DNO
(former RAK Petroleum) he
worked nine years in Oman
at the Ministry of Defence.

New portfolio
Offshore facilities
|| A solid professional background is far more than

a nicety – it is a necessity. David Thorpe

T
he name Ras Al Khaimah liter-
ally means “top of the tent”, a
name derived from its location
at the top of the UAE penin-
sula. This is one of the UAE’s
seven Emirates, situated in a
truly stunning visual setting with magnificent
desolate mountains that fall sharply off to the
desert coastal plain on the edge of the Gulf,
stretching south west to the other Emirates,
north to Iran, then north and west to Iraq,
Qatar, Saudi Arabia, and Kuwait.
Onshore, DNO Ras Al Khaimah has a conces-
sion agreement that encompasses approximate-
ly 850 square kilometres on the onshore coastal
plain and near shore transition zone. Offshore, 3
the Saleh and RAK B fields are located over 50

4
kilometres out in the Gulf where new technology
has opened up new possibilities for fields that
were originally discovered over 40 years ago.
Joint effort
Situated just off the coast of Musandam
Peninsula and Ras Al Khaimah, you find two
oil and gas platforms; Bukha and West Bukha
They may well be believed to belong to Ras Al
Khaimah. Not so, they are located in Oman’s
Block 8 and the DNO office in Oman as-
sumes responsibility for these two oil and gas
platforms in the Gulf, both connected to an
onshore processing plant in Ras Al Khaimah.
The Ras Al Khaimah and Muscat offices plan
to move the production operations base to
1/2 General Manager in the Musandam peninsula as a joint effort later
Ras Al Khaimah D avid this year. An exclave of Oman, Musandam is a
Thorpe on an operational
mission by helicopter to sparsely populated area, with geography and
the Bukha and West Bukha scenery that amaze – but with an infrastruc-
platforms in the Gulf. The
oil and gas platform at
ture that is just now being developed.
West Bukha lies nearly 50 A new processing plant currently being con-
kilometres off the main- structed by the Oman Oil Company OOCEP will
land and just metres from
the Iranian border. receive natural gas from the West Bukha field
that lies offshore in the Gulf and then process
3 A veteran of the oil
and gas industry, David the raw gas to produce a pipeline quality product
Grassick is DNO's General that will be supplied primarily for use in Oman.
Manager in Oman.
“We take the long-term view with regards to
4 Mechanic Gerry Nartatez establishing operations at Musandam. Although
on one of his daily trips to
Bukha 1, where he is re-
it is still at the planning stage, DNO feels that
sponsible for maintenance. any logistical and operational challenges will be

New portfolio
Offshore facilities
|| These fields have significant commercial

potential. David Thorpe
Oman Block 8,
the West Bukha-5
development well.

New portfolio
Offshore facilities
|| Plans are in the works for both a development well on

Saleh and an appraisal well on RAK B. David Thorpe
far outweighed by what is gained to fulfil the Solid professionals BIOREMEDIATION

requirements of the Omani government by sup- Educated as a Mechanical Engineer, David Cuttings from the ocean
porting local development,” says DNO's General Thorpe has experienced the spectra of the oil floor is transformed into
Manager in Oman David Grassick. and gas business. “In my various capacities dur- rich soil.
In addition to the offshore facilities, DNO ing the course of my career, I have worked in
has a number of onshore exploration blocks many different areas that have included drilling, At the helicopter staging facilities
in the mountains and high valleys of Oman. completion, joint-ventures, production, mainte- at Ras Al Khaimah, DNO has es-
The onshore assets include Block 30 in central nance, projects, operations management, and tablished a bioremediation station.
Bioremediation is the use of micro-
Oman, Block 47 in the northern central part of now as General Manager for DNO,” says Thorpe.
organism metabolism to remove
the country and Block 31 in the west. Block 30 “As a result of the combination of improved pollutants. DNO uses this technique
contains a number of gas discoveries which technology, better reservoir understanding to transform contaminated cuttings
DNO hopes to develop in the near future and and higher oil prices, we now see that some of from oil based drilling operations
further exploration drilling on the blocks is the older fields have significant commercial into rich soil.
now being planned. potential. Based on this knowledge, plans are in
Drilling operations penetrate
These areas are rich in oil and DNO’s hold- the works for both a development well on Saleh
deep into the earth kilometres
ings here represent major opportunities, both and an appraisal well on RAK B,” says Thorpe. under the sea floor, pumping up
in the short- and long-term perspective and “The Saleh facility field consists of seven earth and rock – producing cut-
play a central role in DNO’s MENA business wells on six platforms that are connected to tings that have not seen the light
development strategy. In preparation for these export through an 18" pipeline that runs the 45 of day for over 20 million years.
new operations and the growing respon- kilometres between the field and the RAK Gas Rather than using disposal at sea
DNO has chosen to use biore-
sibilities of the Muscat office, DNO is also Processing Facility on the mainland. The Saleh
mediation as an alternative and
relocating the office to new and more modern Field has long been a productive one with a environmentally friendly disposal
premises which reflect the company’s commit- peak in the 1980’s at approximately 70 million technique.
ment to Oman. cubic feet per day of gas and 13,000 barrels
DNO’s General Manager in Ras Al Khaimah, per day of condensate,” says Thorpe. After the cuttings are delivered
David Thorpe has a solid and confident author- Field development plans are well advanced; to DNO’s Hagil Yard they are
carefully deposited in a treatment
ity; balancing the formalities of conducting The first part of the plan is to drill and complete
facility specially designed for
business, with supervisory trips to platforms one well into the Thamama formation and the purpose of bioremediation.
in the Gulf, where the connection between the do an extended production test. If success- Once carefully spread out, the
RAK Gas Processing Facility and operations ful, a second well will be drilled into the same microorganisms begin their slow
50 kilometres out to sea are maintained in all reservoir. Further recompletion and production but effective treatment as they
types of weather imaginable. will be dependent of the success of the test eat the oily residue from the earth
and rock mixture for a period of
When the sea and winds are too high for a production. The production will be delivered to
up to three months. The strong,
boat, the Bell 212 Twin Engine helicopter is the the onshore RAK Gas facility. hot sunlight, combined with the
preferred mode of transport, piercing through “Here at Ras Al Khaimah we have built a hunger of the microorganisms do
the sandy Arabian winds to reach the platforms. team with diverse and capable backgrounds, the natural work to convert the
Normal transport of supplies and equipment this is crucial since our team must combine ancient mixture into arable soil.
takes place with an Incat Crowther-designed careful planning with complex technical opera-
Catermaran, a 27-meter versatile workhorse – tions every day of the year. A solid professional
the lifeline between land and the offshore assets. background is a necessity,” says Thorpe.

Facts
OMAN
Area: 309,500 sq km
Population: 3.1 million
Government: Monarchy
Capital: Muscat
DNO in Oman
Oman plays a central role in DNO’s Middle East
business development strategy.
DNO’s holdings in Oman are focused on four
blocks and the activity is split between three
exploration blocks and one production block.
Assets
Block 8: Currently two producing fields, Bukha
and West Bukha.
Bukha is an offshore gas-condensate field with two
producing wells. A third well will be drilled in 2012.
The West Bukha production is currently averag-
ing 8,000 barrels of oil per day as well as 27
million cubic feet of dry gas.
Block 30: Appraisal/Development
Block 31: Exploration
Block 47: Exploration/Appraisal
Ras Al Khaimah
Area: 1,683 sq km
Population: 263,000
Government: Monarchy, part of the federation
comprising United Arab Emirates (UAE)
Capital: Ras Al Khaimah
DNO in Ras Al Khaimah

DNO’s licences within well-defined petroleum
systems in the Emirates strategically position the
company for both on- and offshore production,
also setting the stage for future expansion
opportunities.
Assets
Rak B: Appraisal
Rak Saleh: Upgrading existing facilities
RAK Onshore: Petroleum concession encompass-
ing approx. 8,500 sq km in Ras Al Khaimah

New portfolio
Oman
Seductive Oman
Beautiful Muscat is mysterious and full of contrasts. Strolling along the attractive
corniche, one takes in the indigenous atmosphere of the Mutrah Souq
and loses one's way in a sea of antiques and culture.

New portfolio
Oman
|| The merger with DNO will create more opportunities in my country

in terms of exploration and production. Amelia Al Maskari

|| We are constantly looking for power plants, petrochemical industries and other
situations where the Omani government needs gas. Abduljalil Al Farsi
T
he Omani capital is as charming 1
as first love, seducing you with
its aromas of ocean, spices
and latticed buildings – not to
mention the mystical sensa-
tions derived from the deep
monotone sounds flowing from the mosque at
prayer time; highlighting an indelible contrast
between ancient traditions and the modern
world; all in a delicate balance.
Muscat is also a modern city, with a pleasant,
relaxed pace of life, is nestled in the backdrop
of the newly built Sultan Qaboos Grand Mosque
in the outskirts of the city. The Al Alam Palace,
situated in the old Muscat along the corniche,
reveals the ancient Mutrah souq, and the
Portuguese forts on nearby seaside cliffs. This
picturesque scene takes one's thoughts back to
ancient times when legend has it Sinbad first
set forth on his journeys from the port at Mutrah.
Beyond Muscat, the country showcases
beautiful coastlines, modern hotel complexes,
jagged mountains, vast arid regions, and a
thriving oil and gas industry. Abduljalil Al Farsi
is an Omani and the External Affairs Manager
at DNO Oman. A amenable professional, he has
had a career that can be measured in sync with
the development of the Sultanate of Oman.
Growing economy
According to Abduljalil Al Farsi, “The country
of Oman has continuously evolved with in-
creasing levels in salaries, employment for the
people, stable rule of law, social benefits for
the population, more equal rights for men and
women and changes in the Ministry to address
the changing times.”
1 Oman plays a central Over the past 40 years, Oman has made its
role in DNO’s MENA
mark as the most improved country in the Arab
business development
strategy. “In Oman, World, according to the United Nations Devel-
it all boils down to opment Programme, making it one of the most
trust,” says DNO’s Ex-
ternal Affairs Manager developed countries in the Middle East.
Abduljali Al Farsi. “His Majesty Sultan Qaboos observes the

New portfolio
Oman
|| The country of Oman has continuously evolved with increasing levels in salaries,
employment and social benefits for the population. Abduljalil Al Farsi

New portfolio
Oman
|| The DNO merger with RAK Petroleum may be said to have shown foresight
and strength that transcend cultural barriers. David Grassick
best p ractices of other countries, monitors the

needs of the people, and takes swift action to
implement fundamental changes when neces-
sary. Over the four decades of rule, the Sultan
has implemented many changes and improve-
ments of which the population is understand-
ably proud. Now, the economy is growing, the
environment is stable and the population is
highly educated,” says Abduljalil Al Farsi.
In addition he talks warmly about the oil
business in Oman, “It all boils down to trust.
When the government places its trusts in what
we do within the oil industry, and at the same
time DNO keenly strives to understand both
government and people, that translates into a
genuine win-win situation.”
Looking for opportunities

DNO will benefit by having acquired many
talented, ambitious professionals with the new
Oman assets and the Muscat office. “I look
forward to a new, promising future with DNO 1
as we continue to expand our possibilities,“

says Abduljalil Al Farsi.
Abduljalil Al Farsi, continues to talk about
the role DNO plays in Oman, “We are con-
stantly looking for power plants, petrochemi-
cal industries and other possibilities where the
Omani government needs gas. By identifying
these opportunities, we can lay the ground-
work for expansion as we maintain high levels
of understanding regarding the governmental
perspective as well as that of the people, com-
pany stockholders and other stakeholders.”
“The DNO merger with RAK Petroleum may
be said to have shown foresight and strength
that transcend cultural barriers. Nowhere is
that more evident than here in the Sultanate
of Oman – a country in progress, and a prime
example of how the company first identi-
fies – and then acts upon – opportunities that
present themselves in each local environment,”
says David Grassick who has recently moved to
Muscatto be DNO’s General Manager in Oman. 2

1 Muscat's Sultan Qaboos Grand
Mosque is the largest in Oman.
The building construction began
in 1995 and was inaugurated in
2001 and can accommodate up
to 20,000 worshippers.
2 Indigenous Omani city dwellers

outside the Mutrah Souq.
3 The Grand Mosque complex

covers an area of 40,000 Arabian voices
square metres and is beautifully The employees in Oman and Ras Al Khaimah have
decorated on the outside as well
as on the inside. Visiting the site
high hopes for the merged company.
is a mixture of tourists, school
children and native Omanis, like
this man wearing a traditional
Omani dishdash.
Moza Salim Al-Sharji
Accounts Administrator, Oman
“I look forward to working in DNO, and
to use my MBA and Ministry of Com-
merce and Industries experience from
working with international companies
based in Oman from Holland, Britain,
Canada, USA, Australia and the UAE. I
don't know much about Norway except
that it is very cold country, beautiful,
with a lot of rain, people with a high
standard of living and it is an interest-
ing place to visit. Welcome to Oman!"
Azhar Ahsan
Senior Accountant, Oman
"I have worked in the business for 17
years with the Canadians, Austra-
lians, Americans, and now DNO. I am
happy, as we have for the first time
a general manager based in Muscat
office taking charge of the Bukha
operations and planning to develop
new fields. I heard that Norway is a
very nice country – but do not know
much more than that. I suppose that
'no news is good news’!"
Abduljalil Al Farsi
External Affairs Manager, Oman
"I have been working internationally
for nearly twenty years, and naturally
I have heard much about Norway and
the Norwegian oil industry. I look
forward to a new and promising future
with DNO as we continue to expand our
possibilities as we maintain good com-
munication with the Omani government
and the people of this country."
Salim Al Badwawi
Operations Engineer, Ras Al Khaimah
“The future is promising as DNO has
vast experience in the oil and gas
industry. Appointing a general manger
in each country indicates clearly a
commitment to development of assets
– also development of local employees
is beneficial and will enhance the
company image and reputation. I
have visited many European countries,
know that Norway is strong and grow-
3 ing, and would love to visit someday.”

New portfolio
Tunisia
AFRICAN HORIZON
Tunisia represents an exciting area of potential in the MENA region, due
to the number of unexplored opportunities and its pivotal position.

T
“ raditionally, oil and gas market European Union and is also a member of the
activities in Tunisia have been Arab League and the African Union.
characterized by small to Today, DNO has exploration activities going on
medium-sized companies that in two blocks in Tunisia, Fkirine and Hammamet.
operate in a country where The onshore exploration block, Fkirine, was
big fields are few and geology signed in October 2011. Fieldwork activities
is a very significant challenge. However, the are underway for the evaluation of the largely
present trend seems to be generally a move unexplored land potential in Fkirine, the 2,064
towards consolidation,” says Michel Pick, square kilometer prospecting block that has
General Manager in Tunisia. now moved into an operative geological and
This bodes well for DNO, which has both the exploration phase.
flexibility and the expertise to seize the pos- The offshore licence Hammamet came into
sibilities that Tunisia has to offer. Michel Pick DNO’s portfolio through the merger with RAK
continues, “Here in Tunisia, a well-educated Petroleum. DNO owns 30 percent in the Ham-
democracy is beginning to emerge – one mamet licence operated by Chinook Energy
Facts
that is eager to explore the opportunities Inc. of Calgary. In 2012 activities will include the
that companies such as DNO bring in the review of the commercial potential of the block.
form of potential business and jobs. They are Tunisia
looking forward to working with professional Putting it all together Size: 163,600 sq km
companies, and we are excited to explore new Michel Pick possesses extensive experience Population: 10.7 million
ventures and opportunities here.” within the entire spectrum of oil and gas Government: Republic
Capital: Tunis
activities that include production, maintenance,
Growth potential drilling, logistics, contracts, procurement, field DNO in Tunisia
Ranked in the top 20 globally in quality of development and project management – well- With almost one and a half billion barrels of proven
higher education by the World Economic suited to the myriad of activities that awaits oil reserves, the prognosis for energy opportunities
Forum, Tunisia is in a pivotal position to him as DNO's general manager in Tunisia. is positive as exploration activities continue to increase.
develop its economy and business arena and “The challenges with Tunisia exist, but the Activities planned in 2012 include geological field-
work, a surface geochemical survey and 2D seismic
is strategically situated between Europe, the potential is promising. In this initial phase, the
acquisition, processing and interpretation.
Middle East and Africa; therefore, the country focus is to strengthen bonds with the govern-
has the ability to grow into a beneficial ment, fulfill all commitments, and of course, Assets
business hub in the long term. Furthermore, increase our understanding of the potential of Hammamet Offshore: Exploration and appraisal
Tunisia has an association agreement with the our assets,” Michel Pick concludes. Fkirine: Exploration
|| They are looking forward to working with professional companies, and we

are excited to work with new ventures and opportunities here. Michel Pick

Gas market
A buff on gas
FULL GAS AHEAD

Energy-hungry markets in the Middle
East rely heavily on locally and region-
ally produced natural gas. As a local
producer, DNO must understand the
nature and logic of the gas market.
T
he Australian Shelley Watson low cost gas existing close to major population
is the General Manager at RAK centres was in decline.
Petroleum, a member of the During the past several years, radical changes
DNO Board, and a buff on have been occurring on the production side, es-
gas production and the gas pecially in North America where the recent ex-
market. Her enthusiasm is pansion of unconventional gas (shale and coal
infectious as she describes the changing gas bed methane) exploitation has rapidly changed
market – much of it driven by technology. “The the dynamics of the world supply situation.
historical movement of large gas reserves to
major population centres has been one of Getting in tune
the challenges of the natural gas industry – a Much of the key to success in the Middle East
challenge, until the dawn of technology that is to understand the nature of the govern-
includes Liquefied Natural Gas (LNG) allowing ments and their need to serve their population.
for huge shipments of frozen natural gas to be “In this region, local and national markets often
transported across the globe,” says Watson. have a specific need for gas. These needs
“Even newer technology, known as gas to are particularly related to power generation
liquids, wherein gas is literally converted and water desalination – and as a result the
through a complex process to a liquid at government requires that the producers sell
standard temperature and pressure is being the gas locally, and urges production within an
developed, which will further enhance the individual country,” says Watson.
ability of large natural gas reserves to reach “Once a gas field discovery is made, the
energy-hungry markets”, she adds. development of the field and the use of the
gas is part of the negotiation between the
The big view producer and the government, and this affects
As she looks out upon the Dubai desert the market as well. Smaller gas fields have
landscape from the office at RAK Petroleum, historically been sold into the local market in
Watson seems to peer into the future, “Both the country in which they are located. More
the supply – and the demand – for LNG is ex- recently, a greater reliance on gas supply from
pected to increase radically in the future with regional neighbours has moved the balance of
the major reserves in Qatar, Australia, Nigeria gas supply and demand,” she continues.
and Indonesia being prepared to satisfy de-
mand that will especially be increasing in the Arrival in style
Far East, India and the Middle East.” DNO is arriving on the international gas market
Expert consensus indicates that huge gas in style with the acquisition of the West Bukha
reserves with the capacity to last several hun- field in the Gulf as part of the merger with
dred years currently exist. Until a few years ago, RAK Petroleum. The field has had a long and

||
Over the longer term, the gas market in the Middle East has been
steadily evolving, and there has been increased demand at the
same time that the price has been rising. Shelley Watson
interesting history, one that Watson happily

explains: “The West Bukha field has a history
that began in the 1970’s when it was first dis-
covered. By 2009, following appraisal drilling
and installation of an offshore platform, up to
10,000 bopd were being produced, with the oil
going to the international market while the as-
sociated gas production goes to the domestic
market in Ras Al Khaimah after processing at
the Rakgas facility.”
“The field has been a longstanding example
of success on numerous levels – exploration,
development, production, and a long-term posi-
tive cooperation with the governments of both
Ras Al Khaimah and Oman, where DNO is the
only offshore gas producer,” Watson goes on.
Bright as the sun

All in all, much of future success will really
boil down to technology and communication.
Technology will continue to play a central role
in the development of the local and regional
gas market and DNO is moving boldly forward
with its asset management.
“Negotiations and communication with the
national governments is one important key to
ensuring continuity of operations and delivery.
Understanding country requirements and
future plans are an important part of com-
munication between energy companies and
governments,” states Watson.
The future looks bright, and Shelley Watson
leaves us with these parting thoughts, “DNO Shelley Watson is
Aussie, enthusiasthic
has entered the Middle East gas market at a and a buff on the gas
very exciting time with strong demand, high market. She is also a
member of the DNO
growth and upward movement in prices.” Board.

The people in the DNO sphere
Photofeature
Everyday life
The DNO portfoilio spans a vast area in the MENA region,
with a myriad of local traditions, historical landmarks and
expanding, forward-looking communities.

The Qaysari Bazaars, also known
as the Kaisary market, lies just
below the entrance to the historic
Citadel in Erbil. The market is
known for sales of household
goods and tools, and it is an
important place where people
go for a good bargain.

Photofeature

At the weekends (Friday and Saturday), when
spring arrives, it is common to see almost
every Kurd outside in parks, underneath
groves of trees and along the winding roads
in the countryside. Here in Erbil it is just
another normal Saturday and urbanites are
enjoying their free time in the Sami Abdul
Rahman Park, the largest park in all of Iraq.
This beautiful and popular park features lakes,
cafes, walkways lined with flower and trees,
fountains, a garden restaurant and benches galore
where people can rest and just enjoy life for a
sunny hour or two. There is even an amphitheater
as well as a health club with swimming pools, a
sauna and a gym. During the summer, the park
stays open long after the sun goes down and
this is indeed when it is the busiest – and most
romantic. The rolling lawns and flower gardens
are a perfect setting for picnics and celebrations
with the people you love the most.

Photofeature
A salesman at the Mutrah

Souq in Muscat, Oman
selling spices and incense.

Falcon training is a
traditional activity that
dates back nearly three
thousand years. This photo
of a falcon and its proud
owner was taken outside
DNO's office in Ras Al
Khaimah, UAE.
An unmistakable shop
in the Kaisary market
in Erbil, with a greater
selection of buckets than
any supermarket.

Photofeature
Kurdish wedding
celebration in the
outskirts of Dohuk
on a glorious spring
day in 2012.

Geology
Field work
TRAcKING TEXAS TEA

Geologists look for clues in rocks and formations. They collect and build the data
so they can detect Texas Tea – as they call oil in some parts of the world.

D
NO operates in five diverse
countries; from high, windy
and remote mountains
to magnificent red sand
dunes, from rocky valleys,
to homogenous sandstone
plateaus, explored and unexplored potential
is being uncovered by geologists who find the
clues that lead to oil and gas production.
One aspect that makes DNO fieldwork
special is that our collection and analysis take
place in such a wide spectrum of geological
environments. Our detective work transpires
in the geological frontiers of the MENA region;
Yemen, the Kurdistan region of Iraq, Oman, Ras
Al Khaimah and Tunisia.
Another aspect of our work is that the develop-
ment of an oil field depends on geoscience;
it begins with finding the personality of the
rock – the geological makeup – of any terrain.
Fieldwork combines elements of geology, geo-
physics, and petro-physics – in other words, the
study of earth history by the use of quantitative
methods throughout the process.

Geology
Field work
||
Being in Kurdistan allows us to work with one of the richest
structures in the world. There is so much left to learn and discover.
This is a rare opportunity for a geologist. Dr. Peter K. Keller
Challenging and fun 3

The geologist’s attitude reflects his or her
never-ending ambition to get out into the
field, to collect, observe, map (structural,
stratigraphic, surface), undertake seismic
surveys and sample rock data to take back
to the office to analyze and interpret.
Technology has changed the playing
field regarding how geologists work, with
new tools that include the iPhone, Google
maps and other new techniques that
supplement traditional use of 2D and 3D
conceptual models and surface observa-
tions with the combination of field work
and homework and development of
reservoir models.
International geologist pool

Dr. Peter Keller an experienced Advisor
in geology, newcomer Senior Geologist
Erich Funk and Geologist Dr. Kathryn
Canner have their own reasons why they
look forward to the weeks in the field.
Erich Funk’s easygoing demeanor and
solid knowledge base combined with his
Germanic ambition make him a good asset
to the Kurdistan team. “I have been there
and done that, so to speak, from integrative
reservoir geology in Brazil and the Middle
East to geological field training courses in
the Pyrenees, a background that has really
prepared me for the geology of Kurdistan.
Once I became employed by DNO in 2011, I
have never looked back. This is fascinating
work,” says Funk.

1/2 The Kurdistan
landscape in March
is still a lush green
before the onslaught
of the relentless sum-
mer heat.
3 The dedicated geolo-

gists Erich Funk (left),
Dr. Kathryn Canner
and Dr. Peter K. Keller
explore the assets in
DNO's five countries of
operation looking for
the carbonates.
||
It’s a beautiful country to do fieldwork, and the
local population is really friendly and interested in
what we are doing in Tunisia. Dr Kathryn Canner A geologist's
most important gadgets
Swiss precision the acquisition of a minimum 200 kilometers of

Combine Dr. Peter Keller’s Swiss precision 2D seismic as well as re-processing of a mini- Maps: For navigating
with a PhD in Geophysics and clearly you have mum 300 kilometers of existing seismic data to the exploration area
a recipe for creative discovery. After joining – exactly the type of assignment that geologist
GPS: For geo-referencing
DNO in 2004, he went off to the sandstones Canner enjoys. In the vast expanses and in this
the important localities
of Yemen as Exploration Manager, and through phase of the exploration at Fkirine, the best way
his years with the company has built up an to cover ground is to drive from outcrop to out- Hammer:
impressive portfolio of experiences. crop to study a large area in a short amount of For rock sampling
Keller now enjoys work with recent discovery time – what Canner calls reconnaissance work,
Compass: To measure
wells Summail-1 and Peshkabir-1 at the Dohouk which allows you to focus on smaller areas once
strike and dip of
and Tawke licences in Kurdistan. “Being in you are familiar with the larger area. geological features
Kurdistan allows us to work with one of the “Although the outcrops are excellent and
richest structures in the world. There is so largely accessible, some of the source rocks Notebook, pencil case
much left to learn and discover. This is a rare have undergone extensive erosion so getting a and measure tape:
opportunity for a geologist,” says Keller with high-quality sample can be difficult. In addition, Good old-fashioned
analog memory-assistance
a wry smile. the fracture patterns at the surface may simply
The Tawke field is a world-class oil reservoir. be the result of exposure – and be misleading Smartphone: The smart-
The potential for the region by far transcends when trying to understand the actual fracture phone is used as as a GPS
simply Tawke, and both Funk and Keller are network deep in the earth,” says Canner. and a compass and can also
knee deep in the wide range of activities that Kathryn continues, “It is great to get in the store maps
take place – all against the surroundings of field and see the rocks that represent potential
Binoculars and
what many call “the birthplace of civilization”, reservoirs within these licence blocks in magnifying glass:
where the ancient empires of Mesopotamia Tunisia. It’s a beautiful country to do fieldwork, For observing what is
and Assyria were located. and the local population is really friendly and beyond the naked eye
interested in what we are doing here.”
Reconnaissance work Camera: Documents
interesting features for
British Dr. Kathryn Canner, grew up with love In a true sense later data assessment
for onsite fieldwork activities and is currently The geoscience department is a cohesive team
working with the Tunisia assets – requiring her of geological detectives, firmly committed to Field clothes:
skills as a geological detective. Tunisia assets building knowledge and experience to provide To be prepared for all
include the newly acquired onshore Fkirine a solid base that brings together all aspects of kinds of weather
licence and the offshore Hammamet added the geology-reservoir-production process. In a
Lunchbox: The hiking
to the portfolio through the merger with RAK true sense, fieldwork is simply a close-up analy- hero needs his/her lunch
Petroleum. sis of our planet. There is much left to discover
The focus of work in the Fkirine block includes – a jigsaw puzzle waiting to be solved.

Yemen
Fast track, low cost
OIL MISTS OF TIME

DNO activities in Yemen have been important to the company’s
revenues. Now, during times of unrest, strong leadership and
skilled local staff are keys to continued production in Yemen.

|| We always try to balance international expertise with
a strong presence of Yemen nationals. Colin Kramer

Yemen
Fast track, low cost
||
Our staff is dedicated, with extensive knowledge and experience in
all our operations that includes seismic acquisition, drilling operations
and production – everything we need to get the job done. Colin Kramer
S
ituated on the southern end of
the Arabian Peninsula is the
utterly unique Yemen, which
is said to be our original
birthplace. The country is
steeped in legend, boasting
the world’s oldest skyscrapers
in Shibam – called “the Manhattan of the des-
ert” – as well as one of the world’s oldest cities,
the capital Sana’a. They form an appropriate
backdrop suitable for DNO’s “Yemen adven-
ture” that has been taking place over the past
decade. DNO currently holds five licences; all
located in the prolific Say’un-Masilah Basin.
All together now

DNO activities in Yemen have made an impor-
tant contribution to company success. Colin 1
Kramer, General Manager in Yemen, assumed

2
the helm of DNO’s Yemen operations in 2001
and since then has carefully built up a strong
team. Kramer was born in South Africa, then
later lived and studied in Scotland and Norway,
making his background international and ver-
satile. He joined DNO in 2001, a “like-minded”
company that dared to take calculated risks
with a view of the future, and nowhere has this
been more apparent in the past year than the
DNO operations in Yemen.
Kramer is a man who chooses his words
carefully, but minces no words when talking
about the Yemen team, “Our staff is dedicated,
with extensive knowledge and experience
in all our operations that include seismic
acquisition, drilling operations and production
– everything we need to get the job done. We
always try to balance international expertise
with a strong presence of Yemeni nationals.”

1 An improbable site in the
vast Wadi Hadramawt in
east Yemen is the city of
Shibam, rising up over the
dry river valley. Called the
Manhattan of the Desert, it
consists of the oldest sky-
scrapers in the world, tower
blocks of seven and eight
storeys built on mud and
faith 2,500 years ago.
2 Colin Kramer with his

team in the Dubai office.
3 DNO has long benefited

from steady production
from the Yemen oil fields.
Western winds entering Yemen in 1998 and being approved

This balance – the result of a Yemenization strat- as an operator that same year, the company
egy – has ensured smooth business even in the quickly expanded its operations through suc-
midst of the political unrest over the past year cessful exploration and fast-track development.
when the strong winds of change blew through One of the first on-site was Kenneth
the Middle East during 2011. The Yemen upris- Myhrvold, now the company's Petroleum
ing occurred at the same time as the Egyptian Technology Department Manager and Chief
Revolution and the general wave of protests Petroleum Engineer. At an early stage
in the Middle East that same year. It was then Myhrvold recognized the potential of DNO
that Kramer and his team lunged into action. assets in the country – not because of “flashy”
“The situation required leadership and numbers potential – but for its stability of
strong decisions, and we relocated a number production. “The homogenous sandstone
of employees to the office in Dubai,” says found in Yemen makes prediction of subsur-
Kramer, who supervised the relocation along face content relatively straightforward – good
Facts
with his core administrative, financial and news for oil production,” says Myhrvold.
technical staff. “While ensuring production was
yemen
maintained in all assets at an uninterrupted Steady as she goes Area: 528,000 sq km
level,” he continues. DNO has benefitted from good news over the Population: 24.8 million
years in Yemen – as Myhrvold indicated they Government: Republic
The money flows would be, “steady and predictable over many Capital: Sana’a
DNO's contracts and presence in Yemen con- years, with a gradual decrease in production as
tinue to supply the company with substantial expected in mature oil fields.” DNO in Yemen
DNO has been in Yemen since 1998 and has
oil revenues despite political change. “Quite Although the production numbers have
created significant value through fast track, low
naturally, Yemen operations can be a challenge – never been huge, significant value through cost development. More than 100 million barrels
especially when temporarily relocated to Dubai. fast track and low cost development has of oil have been produced at the six oil fields.
Helping the process has been the close commu- resulted in more than 100 million barrels of The fields are mature, the cost of development
nication between the Yemen oil authorities and oil being produced at the three oil fields and has been low and the production has been
our strong national staff,” says Colin Kramer. 70 wells. The fields continue to produce, and stable, with a slight decrease over the years.
With new discoveries, the hope is to increase
Even though leadership activities are now run although output has declined over time, it is
the production in Yemen.
from the Dubai office, oil production numbers stable and continues to be an important part
in Yemen perform according to plan. In short, of the DNO portfolio. Assets
DNO operations have continued largely unaf- Colin Kramer is a focused as well as a patient Block 32: Tasour: 4+ million barrels reserve
fected despite this time of unrest – showing man, and until he gets the “go ahead” to move Godah: 6 million barrels reserve
again DNO’s ability to stay nimble and dynamic. back to Sana’a he will continue to run the suc- Block 43: Nabrajah 15 million barrels reserve
Block 47: Yaalen 6+ million barrels reserve
cessful Yemen operations from the DNO’s office
Sharnah development/exploration
Fuel the machine in Dubai. Still, from the look in Kramer’s eyes, Block 53: Sharyoof 2+ million barrels reserve
Yemen has also been instrumental in financ- one can easily see that he is more than ready to Bayoot 6+ million barrels reserve
ing DNO’s expansion in other countries. Upon get the signal to move back home to Sana’a. Block 72: Gabdain exploration

Shareholders
The DNO Initiative
valued shareholders
Since its inception in 1971, DNO has been followed closely
by thousands of shareholders at any given point in
time, a rather enthusiastic and loyal group.
1
T
orstein Øygarden became a their interests in acquiring DNO, particularly
shareholder in 1999 and joined because of the exposure in Kurdistan. The
an online discussion group on DNO Initiative’s goal was to represent private
Stock-Talk that same year to get owners in any takeover discussion with the
more familiar with the company potential new owner of DNO. However, this
and to discuss DNO’s ongoing takeover interest did not come to fruition.
activities with other shareholders. In 2010 when RAK Petroleum came on the
“For many years we kept contact on the dis- horizon and began purchasing stock, the
cussion group and met each other at the An- “cybergroup” sprung to life once more. Accord-
nual General Meetings at Aker Brygge in Oslo. ing to Øygarden, “The DNO Initiative came
Some of the members also met regularly, once especially active when we understood that
a month in Norway’s “oil capital” Stavanger to RAK Petroleum was purchasing critically close
discuss energy policies in general, and DNO in to the 33 percent mark that summer”.
specific, over a pint or two.”
“Our group loyally followed the company, In the distance
resting when there was not much to discuss, By then, the DNO Initiative, coordinated by
but roaring to life with opinions and view- Øygarden, had been joined by member and
points when we felt the need to say our piece,” legal advisor Kåre A. Tjønneland and Kjell
says Øygarden. Pettersen. “We were well aware of the
developments and rumours of a merger. Once
No ordinary stockholders a prospectus became available, it was evalu-
Øygarden observed over time that this was no ated, and there arose a cause for concern
ordinary group of shareholders, “Over the years, I because of potential share dilution, proposed
discovered an intense interest and loyalty from a DNO activities in new countries and areas of
wide group of shareholders – many of whom pos- operation – and also that DNO’s assets were
sessed intricate knowledge of the oil industry.” undervalued,” says Tjønneland.
The phrase “The DNO Initiative” was coined Of course, these viewpoints of the DNO Ini-
in 2007 when it became known in the market tiative group did not come as a surprise to the
that some large oil companies where voicing company itself, as DNO had long been aware

|| Over the years, I discovered an intense interest and loyalty from
a wide group of shareholders. Torstein Øygarden
2 4
of the fierce loyalty that shareholders felt to- our group had a common interest and that 1 Bijan Mossavar-Rahmani,
visionary entrepreneur and
wards the company. The next step was to open we where thinking quite similarly on DNO’s DNO's executive chairman
the lines of communication between the DNO strategy going forward. The DNO Initiative at a stockholder meeting
Initiative and RAK Petroleum. “RAK Petroleum was convinced that the merger would be in in Stavanger.
chairman of the board and chief executive offi- the best interests of both the company and its 2 Loyal and enthusiastic
cer – now also DNO executive chairman – Bijan shareholders.” from the DNO Initiative,
Kjell Pettersen, Torstein
Mossavar-Rahmani, requested a telephone Øygården and Kåre A.
meeting with our group,” says Øygarden. The twelfth hour Tjønneland.
With the General Assembly just 24 hours
3 Haakon Sandborg talking
The clock ticked away, an online survey was created and sent to stockholders.
Despite the fact that these men were impressed out to all shareholders who were members
4 Torstein Øygården, the
with Mossavar-Rahmani and RAK Petroleum, of the Initiative – the survey was specifically initial mastermind behind
the DNO Initiative remained dead-set against a designed to explain the exact status, the situ- the DNO Initiative.
merger as the clock ticked towards the extraor- ation, and the benefits of the merger. Time
dinary general assembly. “Although against the passed, and as the night wore on shareholders
merger, we wanted to keep the lines of commu- showed their support. As the new day dawned
nication open, and agreed to one last meeting it became clear that the DNO Initiative had
with Bijan Mossavar-Rahmani. When we walked provided the mandate to vote on behalf of the
into the meeting with Bijan, we were against the merger by the members.
merger. When we walked out of the meeting, A shared press conference with RAK Petro-
our position had changed,” tells Øygarden. leum was urgently put together at Continental
Hotel with the message broadcasted that
The winds changed DNO and RAK Petroleum had found common
“Bijan Mossavar-Rahmani impressed us with a ground for the merger.
well-balanced plan for the pending merger, as As they say, the rest is history, as the merger
well as a pledge to support the nomination of was approved by the two companies respec-
a qualified candidate of the smaller sharehold- tively on November 1 and on November 4 in 2011.
ers to the board,” says Øygarden. “Bijan also The merger was finalized on January 10 2012,
convinced us that the major shareholder and and DNO has entered a dawn of a new era.

Corporate management
The resource matrix
DYNAMIC AND ADAPTABLE

As a result of the merger with RAK Petroleum, DNO has reorganized the technical
staff into a resource matrix to efficiently allocate expertise and human resources.

|| It is all about finding the right development solutions to ensure
highest possible recovery. Kenneth Myhrvold
1 The chief geologist Ståle

Monstad is fond of motivat-
ing other DNO geologists
with field excursions as a
way to expand knowledge
and experience.
2 Both Jon Petter Sargeant

and Kenneth Myhrvold are
expats and work at the
office in Dubai.
3 Director of human
resources, Anita Aarnæs.
1 2 3
T
he merger created a larger Geoscience department process requires a balance – understanding
organization – and an even The geoscience department uses its geological the nature of the reservoir, type of oil, fluid
larger amount of tasks for and geophysical expertise in the never-ending dynamics, porosity, permeability – and other
the DNO workforce. When search for the right combination of parameters aspects that give an oil field its personality.”
integrating people from that leave the clues about the subterranean
the two companies, it was reservoirs of oil and gas. The team methodi- Drilling and production department
decided to move from the cally builds knowledge from analysis of remote The elements that matter with drilling are flex-
previous asset based organization to a matrix. data, fieldwork, mapping, collecting and ibility, technology solutions, low-cost adaptability,
A resource matrix is an organizational sampling of rock data, seismic acquisition and speed, and naturally – success. Drilling opera-
structure that allows the company’s differ- processing – all the time working closely with tions are costly and demanding, and the drilling
ent technical and operational experts to be the other technical areas. and production department has an important
allocated on the projects where their expertise “This is exciting and technically challenging work role in the DNO success. As department manager,
is needed – serving all five countries of opera- in one of Norway’s oldest oil and gas companies, Jon Petter Sargeant is responsible for all drilling
tions in a flexible and cost-effective way. and in a true sense the fact is that fieldwork is activity – he has to make certain that all chances
“The resource matrix promotes systematic simply a close-up analysis of our planet. There is for success are maximized. He is also responsible
communication. We are able to capitalize on much left to discover – a jigsaw puzzle waiting for implementing flexible solutions such as the
the transfer of knowledge that results from to be solved,” says Ståle Monstad Geoscience Kurdistan region of Iraq’s first horizontal well,
this exchange – which enables DNO to identify Department Manager and Chief Geologist. that was drilled in order to gain more practical
and benchmark best practices across the orga- and reservoir knowledge at the Erbil licence.
nization,” says Anita Aarnæs Director Human Petroleum technical department The year 2012 will be an especially im-
Resources, . Kenneth Myhrvold has been involved in most portant year for the drilling and production
of the assets in the company, and was chosen department; with about 20 planned wells
Embraced at all levels for the position as the Technology Department to be drilled across DNO’s operations as the
Resource matrix meetings take place at least Manager and Chief Petroleum Engineer – company reaches new levels of activity.
once weekly. To ensure decisions are immediately because he has shown he has the knack to “Matrix organizations always create a certain
anchored in the corporate management, the di- succeed in an energy thirsty world. tension, a positive tension, as perspectives are
rector for subsurface and exploration (Tore Lilloe- Kenneth explains, “It is all about finding the challenged through a dynamic exchange of
Olsen) and the director for group operations right development solutions to ensure highest ideas and energies. It is our responsibility to
(Trond Myrseth) are involved in every meeting possible recovery in the most cost effective extract the most value of this dynamic interac-
together with the core technical managers. manner by which we will be judged. The tion," concludes director Aarnæs.

Finance
London listing
The prestigious
London stock exchange
As the year 2012 is the dawn of a new era for DNO, it is only fitting that
the company explores a potential London listing.

R
ight down the street from St on the London Stock Exchange. A London listing cess that requires great care,” says Sandborg.
Paul’s Cathedral in London, is part of a long process that requires careful Transparency and financial activities that
you will find one of the study and action in regards to all operational, are above reproach are a prerequisite for
world’s oldest and most pres- legal and financial requirements,” says Sandborg. admittance, this fact echoed by the London
tigious international markets The company is geared and operationally Stock Exchange. “Underpinned by London’s
for financial trade. ready to expand its international success. balanced and globally-respected standards
“Admittance to the London Stock Exchange The essential leadership and management at of regulation and corporate governance, the
increases both visibility and credibility – and all levels of corporate activity are carefully main market represents a badge of quality for
would provide access to global investment selected and strategically placed, from the top every one of its listed, trading companies and
funds that would help fund DNO's growth for leadership of BijanMossavar-Rahmani as the an aspiration for many companies worldwide,”
years to come,” says Haakon Sandborg, CFO in Executive Chairman, Helge Eide as the Managing continues Sandborg.
DNO, a meticulous finance man with back- Director, to corporate management, general
ground in banking. managers and core technical managers. When the time is right
DNO is careful to position itself – to ensure that
Giant step Only the best when it is correct from a legal, communication
The hitch between DNO and RAK Petroleum An important part of the process involves and financial perspective – the listing might
– with their complementing experiences, tech- the UK Listing Authority, the organization materialize. On 15 February 2012 the fourth
nologies and areas of business – sets the stage authorized to evaluate and guide the listing quarterly presentation was held in London to
for a promising future. This union has been one process and work with companies that aspire increase visibility in the London market. With
essential element in the onward progression to membership. DNO takes great care as part a crowd of media and analysts buzzing in the
towards the London Stock Exchange. of the process to maintain a close cooperation background Sandborg emphasized; “In 2011
“We are now at a juncture where we are with the Listing Authority to ensure that all DNO had record profits, but we can not relax.
poised for major international growth, but we eligibility requirements are met. “We carefully 2012 is a year with major increases in invest-
take nothing for granted in terms of DNO listing construct all elements of the application, a pro- ments, developments and exploration.”
|| A London listing is part of a long process that requires careful study and action
in regards to all operational, legal and financial requirements. Haakon Sandborg

Oil market
analyst
A peek into
the crystal ball
The financial service firm Macquarie knows what you need to know
about exploration trends and demand for oil. The oil market is far
from saturated and the oil boom is never-ending, only changing.
M
acquarie is a globally cycle. The overall oil market is healthy, but a level perhaps double of that, within the next
respected provider there are factors to keep in mind, including decade. This production number has increased
of banking, financial, potential political instability in a world where by only 10 percent over the past decade, from
advisory, investment globalization continues to have an ever- just over 72 mbpd in 1999. The fact is that it
and funds manage- increasing impact.” dropped by over two million barrels per day
ment services, and the from 82 mbpd at the end of 2008.
oil market is one of their areas of expertise. Keeping up At the same time, consumption has increased
According to Paul Connolly, senior managing Current estimates dictate that there should be nearly 15 percent during the period from 1999
director of Macquarie Capital, “The oil market enough oil for at least the next half century, to the end of 2009 – from 75,648 mbpd to the
presents an interesting mix of variables that although in many cases the cost of extraction end-2009 level of 84,077 mbpd. It is clear that
will face the global environment over the next will continue to rise. At the same time, the dynamic, creative exploration and financing will
several years. New technologies and geologies overall demand will likely double during the be necessary to expand production, as the “old”
will continue to influence exploration and the next two decades. oil fields simply do not meet demand. The bot-
development of infrastructure, driving produc- “The key issue involves the expansion of global tom line is that new discoveries and techniques
tion growth in regions that have been under- production to meet demand – at the same time are needed to supply the ever-growing demand
explored or exploited in recent decades.” when much of this production takes place in, or for this diminishing energy source.
in the vicinity of, countries with some political
A view beyond risk involved, and often with the involvement of DNO and MENA
The global oil market in general has rarely been state-run governments,” Connolly points out. Concerning the Middle East and Northern
more dynamic as the regional factors and prod- Africa (MENA) region – analysts agree it is not
uct mix continue to change rapidly. Emerging Changing of the guard without challenges and risks – but there is a
market growth and OECD declines will continue The world production scenario is changing huge up-side which makes it a very attractive
to alter demand patterns, with diesel demand from the “old” oil fields that have long been investment scenario. In the long term, there
continuing to rise. Macquarie indicates that the stalwart of supply. The world’s largest oil is a strong growth potential, one that reflects
although production costs are rising, the invest- field, Ghawar has been in production for 57 current strong budget surpluses, currency
ment is strong, but largely unproven reserves years, and supplies five percent of the world’s stability and an ever-increasing transparency
could drive long-term production growth. oil needs. Regions such as the North Sea are regarding corporate disclosure.
David Farrell, oil and gas analyst from in production decline, as is Alaska’s Prudhoe Operations in the MENA region demand the
Macquarie Securities says, “Macquarie believes Bay with only two billion recoverable barrels capital, the experience, and the flexibility to op-
that global oil demand will continue to grow remaining of an original total reserve estimate erate in changing and challenging environments.
during the next several years driven largely by of 25 billion barrels. According to David Farrell, “We believe that the
the growth economies of India and Asia. At the Major production and infrastructure invest- DNO merger with RAK Petroleum has strength-
same time, production will also see growth, ments will be required to expand capacity from ened the company’s position to continue its
but at higher costs for the full production the current 80 million barrels a day (mbpd) to diversification across the MENA region.”

Paul Connolly (right) and
David Farrell (left) at
Macquarie's very hip office
in London. They are bullish
concerning the oil market
and DNO.

This is DNO
DNO is an entrepreneurial independent exploration and production (E&P) company,
geographically focused on the Middle East and North Africa (MENA) region with
operations in Yemen, the Kurdistan region of Iraq, Oman, Ras Al Khaimah and
Tunisia. The group is headquartered in Oslo and listed on the Oslo Stock Exchange.

DNO explores for oil and natural gas in frontier areas and in regions with
established oil and natural gas production and infrastructure. The company’s
growth is achieved through smart exploration, cost effective and fast track
development, efficient operating techniques and strategic acquisitions.


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a dno magazine // 2012

Full gas Exciting

A new era for DNO

dno 2012 // PROJECTS 1

|| The new DNO is a more mature company.

2 People& // dno 2012

People & projects Design and production:

DNO International RedInk:

dno 2012 // PROJECTS 3

The oil and gas industry is

DNO’s new giant

4 People& // dno 2012

Oil in everyday life:

Fish and meat Beloved child has many origins

dno 2012 // PROJECTS 5

6 People& // dno 2012

dno 2012 // PROJECTS 7

8 People& // dno 2012

dno 2012 // PROJECTS 9

10 People& // dno 2012

July August September October November December

dno 2012 // PROJECTS 11

Where are we?

12 People& // dno 2012

14 People& // dno 2012

dno 2012 // PROJECTS 15

|| This is a first for ladies in the history of Iraq and Kurdistan,

2011 are now either in

16 People& // dno 2012

dno 2012 // PROJECTS 17

|| Since I was a teenager growing up in Zakho I knew that it was

18 People& // dno 2012

dno 2012 // PROJECTS 19

20 People& // dno 2012

dno 2012 // PROJECTS 21

|| I always wanted to be in the maintenance team, and now I am. My ambition is

22 People& // dno 2012

dno 2012 // PROJECTS 23

PAST, PRESENT AND FUTURE

24 People& // dno 2012

After leading the growth of DNO's Kurdistan

dno 2012 // PROJECTS 25

26 People& // dno 2012

|| It is my philosophy that individuals can achieve,

dno 2012 // PROJECTS 27

28 People& // dno 2012

dno 2012 // PROJECTS 29

|| Erbil city has a population of nearly one

30 People& // dno 2012

been included as one of the 100 most endangered

for me to come back to Erbil was two years ago.

Move over Dubai 2 Erbil is growing by leaps and

dno 2012 // PROJECTS 31

32 People& // dno 2012

dno 2012 // PROJECTS 33

34 People& // dno 2012

|| I am the mother of nine children, and I have found this

36 People& // dno 2012

best p ractices of other countries, monitors the