Genel Energy, the London-listed explorer headed by Tony Hayward, is hoping to keep up with revenue targets after the KRG’s ban on exprts by selling plenty of oil cheaply to the Kurdish region’s domestic market.
In an interim statement released on 18 May, Genel confirmed ina management statement that it was revising its output target down from 60,000 barrels a day to 45,000 bpd after the Kurdish regional government banned exports via infrastructure controlled by the central government after a spat over non-payment.
Genel says it is continuing with its facilities export plan and still expects to hit revenues of at least $250 million this year by selling more oil domestically, where it typically fetches $50 a barrel.
“Development drilling programme and facility upgrades at Taq Taq and Tawke are on track for production capacity target of 200,000 bopd for Taq Taq in 2014 and 100,000 bopd for Tawke by the end of 2012. Studies are underway to support 150,000-200,000 bopd from Tawke in 2014,” said the statement.
“Operations are performing well and we continue to build production capacity at both Taq Taq and Tawke,” said Hayward. “We are adding proven reserves as our two producing fields are fully appraised and our high impact exploration drilling programme of seven wells remains on track.
Baghdad maintains that Kurdish oil contracts are illegal and has resiled from a bilated agreement with the region to reimburse companies operating in Kurdistan for their capital and operating expenses by way of periodic payments to the KRG.
In an interview with Iraq Oil Report, Natural Resources Minister for the KRG Ashti Hawrami has claimed that the region has the right to independently export its own oil, and confirmed that a new export pipeline to the Turkish border was under way, which is due for completion in two years’ time.
