Genel Energy, one of a handful of foreign oil producers in Iraqi Kurdistan, slashed its reserves estimate for Taq Taq, its largest operational field, by about 66% and suspended its 2017 gross average production forecast for the field, according to Reuters.
The company said it expected to book an impairment against the carrying value of its holding in the Taq Taq field by $181mn in its 2016 accounts, blaming significant uncertainties around the oil reserves in the field.
Genel estimated that Taq Taq had gross reserves of 59mn barrels of oil as of February 28, down from the 172mn it had estimated in December 31, 2015.
“Reduction in reserve estimates for Taq Taq is a consequence of a reassessment of the gross rock volume above the oil water contact and fracture porosity in the undrained cretaceous Shiranish reservoir,” Genel said.
