Genel Energy, the Iraq-Kurdistan focused energy producer, has succeeded in boosting its production rates in 2019 despite the decline in its revenues because of payment delays from the Kurdistan Regional Government (KRG), according to Pipeline Oil and Gas News.
In 2019, Genel Energy received $317 million in cash proceeds, an $18 million decrease than 2018’s. The company said it has yet to receive $54 million in payments from KRG.
Moreover, Genel, which has a 25% working interest in Tawke field and 44% interest in Taq Taq field, increased its net production to reach 36,250 barrels of oil per day (bbl/d) during 2019, compared to 2018’s 33,690 bbl/d. The company also mentioned that its Bina Bawi project has seen significant progress.
Furthermore, Genel has reached an understanding with KRG in terms of commercial terms its oil and gas development. Currently, the company is awaiting a draft legal agreement reflecting the progress.
“We increased our highly cash-generative production in line with guidance, paid a material dividend, grew our operating capabilities, and added new assets to the portfolio that will bear fruit in 2020,” said Bill Higgs, Genel CEO.
Higgs added that the company’s production will continue to increase as its Sarta field, in which it owns 30% of its stakes, comes on stream this summer.