DNO ASA — Environmental & Social Information 2020

Sep 10, 2020

DNO Starts Gas Capture and Injection in Kurdistan, Slashes CO2 Emissions

DNO Starts Gas Capture and Injection in Kurdistan, Slashes CO2 Emissions

Oslo, 11 September 2020 - DNO ASA, the Norwegian oil and gas operator, today

announced that the USD 110 million Peshkabir Gas Capture and Injection Project

in its Tawke license in the Kurdistan region of Iraq is onstream and has reached

the one billion cubic feet of gas injection milestone. The project is expected

to reduce annual emissions from the Company's operated production by over

300,000 tonnes of ?CO(2) equivalent?, offsetting the emissions from some

150,000 automobiles.

Engineering and construction were launched in mid-2018 and commissioning

completed in mid-2020 in what is the first gas capture and storage project in

Kurdistan. Some 20 million cubic feet a day of previously flared gas at the

Peshkabir field is gathered, treated and transported 80 kilometers by pipeline

to the Tawke field where it is injected for storage and reservoir pressure

recharging.

Effective June 2020, the project halves the average carbon intensity of the

Company's operated production from 14 kilograms CO(2 )equivalent for each barrel

of oil equivalent produced (kg CO(2)e/boe) to an average of 7 kg CO(2)e/boe.

This compares to the target set by a group of 12 of the world's largest oil

companies comprising the Oil and Gas Climate Initiative (OGCI) to reduce the

average carbon intensity of their aggregated upstream oil and gas operations to

between 20-21 kg CO(2)e/boe by 2025 from a collective baseline of 23 kg

CO(2)e/boe in 2017.

"Gas injection and the associated carbon capture and storage is proven,

practical and potentially profitable," said Bijan Mossavar-Rahmani, DNO's

Executive Chairman. "Our project was completed on schedule and on budget

notwithstanding the challenges of working in what is still a frontier oil and

gas operating environment and the obstacles posed in the late stages by the

Covid-19 pandemic," he added.

Gas flaring at the Peshkabir field has been reduced by over 75 percent, with

work underway to reduce it further. Any Peshkabir field injected gas produced at

the Tawke field will be recovered and recycled into the latter or used as fuel

to displace diesel.

Reservoir models suggest gas injection will increase gross Tawke field

recoverable volume by 15 to 80 million barrels of oil, of which 23 million

barrels are included in the gross proven and probable (2P) Tawke field reserves

in the DNO 2019 Annual Statement of Reserves and Resources.

DNO's greenhouse gas emissions increased following commencement of production

from the Peshkabir field in 2017 as the oil contains a relatively high

associated gas content. Flaring from the Peshkabir field was the largest single

contributor to DNO's total 2019 greenhouse gas emissions of 639,200 tonnes of

CO(2)e.

Mr. Mossavar-Rahmani announced the launch of a new initiative to more actively

measure, monitor and mitigate methane leakages at DNO's operated sites, noting

that while CO(2) emissions from oil and gas operations receive the greatest

attention, methane emissions are a significant but underreported source of

greenhouse gas with an impact 25 times greater than CO(2) on a 100-year horizon.

DNO operates the Tawke license containing the Tawke and Peshkabir fields with a

75 percent interest; partner Genel Energy plc holds the remaining 25 percent.

The Company will publish its Corporate Social Responsibility Report, which

covers greenhouse gas emissions developments and strategies, next week.

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For further information, please contact:

Media: media@dno.no

Investors: investor.relations@dno.no

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DNO ASA is a Norwegian oil and gas operator focused on the Middle East and the

North Sea. Founded in 1971 and listed on the Oslo Stock Exchange, the Company

holds stakes in onshore and offshore licenses at various stages of exploration,

development and production in the Kurdistan region of Iraq, Norway, the United

Kingdom, Netherlands, Ireland and Yemen.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.