Genel’s Operations In Kurdistan “Normal” Despite Regional Tensions

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Genel energy

Somalilandsun ) – Genel Energy PLC said Wednesday operations in Kurdistan are progressing as normal despite ongoing tension in the Iraq between the regional and central governmentsGenel said exports from the Taq Taq and Tawke oil fields, in which it has a 44% and 25% working interest, continue with payments received on time. 

Tensions in Kurdistan have risen since a September referendum, which saw some 93% of 3.3 million Iraqi Kurdish voters back independence. The decision has been met with threats of sanctions from both Iraq and Turkey.

On Monday, Iraqi federal troops entered the disputed Kurdish-controlled province of Kirkuk and seized large parts of the oil rich-area, including the Baba Gurgur oil field, the first to be discovered in the northern Iraq oil region.

Net average production for the quarter, which ended September 30, was 33,810 barrels of oil per day. Year-to-date average production as at the same day is at 36,030bopd. 

Production at Taq Taq averaged 110,460bopd for the quarter, with Taq Taq averaging 14,080bopd. 

During the quarter, Genel said it executed a “landmark” settlement agreement with the Kurdistan regional government which the company expects to materially enhance cash flows going forward.

For the first nine months of the year total cash proceeds were USD191.0 million, with USD52.0 million coming in the third quarter. Since the period end it has received USD22.6 million in payments for Taq Taq and Tawke.

Guidance for full year capital and operational expenditure remains unchanged. It expects capex spending of between USD60.0 million and USD75.0 million for Tawke and Taq Taq, with its Kurdistan gas business capex expected to be between USD10.0 million and USD15.0 million. Total operational expenditure is expected to be within a USD30.0 million and USD35.0 million range.

Genel also said initial results at its onshore Somaliland operations have provided sufficient encouragement for a number of high grade areas to be targeted with infill 2D seismic acquisition. Processing of the data will continue into next year.

Shares in Genel were up 2.1% at the start of trading Thursday at 123.25 pence.

By George Collard; georgecollard@alliancenews.com

Copyright 2017 Alliance News Limited. All Rights Reserved.

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