DNO issues force majeure, suspends production in Yemen


DNO issues force majeure, suspends production in Yemen

OSLO, Norway -- DNO has issued force majeure notices to Yemen's Ministry of Oil and Minerals for Block 32 Howarime and Block 43 South Howarime. DNO had previously invoked force majeure for Block 47 South Hood in September 2013.

DNO has temporarily suspended production from Block 32 and Block 43. Production from the two blocks averaged 1,600 bopd on an aggregate company working interest basis prior to suspension.

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

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

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

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