Norwegian oil firm DNO explores Syria route for Kurdistan crude exports

Norwegian oil producer DNO is pursuing new export routes through Syria to move crude from Iraqi Kurdistan to the Mediterranean, aiming to escape low prices in the local market and secure higher international rates, Reuters reported.

Current sales below global benchmarks

The company has been selling crude from its Tawke and Peshkabir fields locally at discounted prices. In October 2026, the domestic sales price rose to $45 per barrel, up from an average of $38.50 in the third quarter of the same year, yet still far below global benchmarks.

Shifting logistics after years of war

Transport through Syria was previously impossible due to the Syrian civil war. However, regional logistics are now changing. Large volumes of fuel oil and crude from southern Iraq are already being moved by tanker trucks directly through Syria for export. DNO is requiring international buyers to deposit US dollars in its offshore accounts before any oil is collected, a precaution reflecting past payment delays from the Kurdistan Regional Government (KRG).

Infrastructure challenges ahead

While trucking is feasible for short-term shipments, a long-term solution would face significant infrastructure hurdles. Despite prior US political support for studying the route, rebuilding a key oil pipeline linking Iraq and Syria may cost around $15 billion and take years to become fully operational.

DNO is meanwhile increasing its drilling operations to raise gross output from its key Kurdish licences. These fields averaged 77,621 barrels per day in the third quarter of 2026.