BUZZ-Norway's DNO surges after KRG says to pay oil producers

Nov 10 (Reuters) - ** Shares (Berlin: DI6.BE - news) in Norwegian oil firm DNO jump 13.8 percent after Iraqi Kurdistan sold 34.5 million barrels of oil worth almost $3 billion since January, the Kurdistan Regional Government (KRG) said late on Friday..

** The KRG said in a statement that it would make an initial payment of $75 million to oil producing companies for their exports and would make further payments on a regular basis.

** "Higher oil export is positive for DNO (Other OTC: DTNOF - news) and increases the probability for a credible payment mechanism in the future," Swedbank (Other OTC: SWDBF - news) analyst Teodor Sveen-Nilsen writes in a research note to clients.

** "Even with realised oil prices at a $20 discount to Brent, we see more than a 50 percent upside potential from the current share price," Nilsen adds.

**Swedbank has a 'Buy' recommendation and a target price of 26 Norwegian crowns.

**DNO is an important oil producer in the region due to its Tawke oilfield.

** Other oil producers in the semi-autonomous region include the UK's Genel Energy (Other OTC: GEGYF - news) , Gulf Keystone Petroleum and Afren (LSE: AFR.L - news) . Shares in Gulf Keystone rise by more than 9 percent, and Genel shares rise around 12 percent at 0900 GMT. (Reuters messaging:; stine.jacobsen.thomsonreuters.com@reuters.net)