DNO International (DNO) is an oil & gas company focusing on the exploration & production part of the value chain. DNO’s primary focus is in Yemen and the Kurdistan part of Iraq. DNO’s largest field, the Tawke field in Kurdistan, is operated together with the Kurdistan Regional Government (KRG). Yet, no export from Tawke is currently allowed as a final agreement between KRG and the central government of Iraq has not been reached. DNO’s geographical exposure makes them vulnerable to political risk. This materialized in the fall of 2009, when KRG threatened to withdraw DNO’s license, due to DNO’s damaged reputation following the sale of shares to the KRG Natural Resources minister. Besides the high political risk, DNO is exposed to the oil price development, which affects earnings and willingness to invest in new projects.