Genel Energy has expressed its confidence that construction of the Bina Bawi gas project in the Kurdistan Region of Iraq (KRI) will begin next year, after discussing terms with the Kurdistan Regional Government (KRG), Reuters reported.
The company’s CEO Bill Higgs clarified that commercial terms could be reached as late as April for work on the ground to begin next year.
Genel wrote down $424 million at the Miran field in March amid slow progress on Bina Bawi, which will be developed first. Genel will use money from oil output at Bina Bawi to fund a phased development for full-scale gas production.
The Bina Bawi project has the potential for the development of light oil, providing Genel with the opportunity for near-term revenues that can be used to expedite the development of the 8.2 trillion standard cubic feet of gas resources, as per the company’s website.
The London Stock Exchange (LSE) listed company is the largest holder of reserves and resources in KRI, where it has been operating for over a decade. Genel will pay an interim dividend of $0.05 per share to its shareholders, amounting to a total $14 million, as part of its pledge to distribute at least $40 million a year.