The Anglo-Turkish oil company, Genel Energy, mentioned that it expects a decline in production at its Kurdish oil fields. The company recorded a net production averaged 53,100b/d in the third quarter of 2016, with 8% decrease compared with volumes from quarter two, reported UPI.
The majority of the oil extracted by Genel in Kurdish Iraq is transported through a pipeline to the city of Ceyhan in southern Turkey and then exported globally, according to International Business Time. The company operates Taq Taq and Tawke oil fields in the northern semiautonomous region. Despite declining production at Taq Taq, the company is focused on preparing a revised field development plan for the field, which is expected to be completed in early 2017.
The company’s CEO, Murat Ozgul, said that Genel has received $163m in cash proceeds during 2016, underpinning the drilling of successful production wells across Taq Taq and Tawke. He added the company remains optimistic given that the Kurdistan Regional Government (KRG) has made significant progress in restructuring the region’s economy, together with export volumes at Ceyhan having increased following a new deal with the federal government, and the recent recovery in the oil price, this bodes well for the region’s cash flows.