Genel Energy expects drop in production for third year

Bloomberg

Iraqi Kurdistan-focussed Genel Energy expects oil and gas production to fall for a third year in 2018, it said, as it shifts its focus to two new gas fields. The decline in production is due to a continuing slide in output from the Taq Taq field, once considered Genel’s flagship field, after the well hit water in 2016.
Genel’s operations in the northern Iraqi region were, however, largely unaffected following the Kurdistan Regional Government’s (KRG) indepe- ndence referendum late last year that led to a military confrontation with Baghdad as well as sanctions from neighbouring countries, its Chief Financial Officer Esa Ikaheimonen told Reuters.
Although the unrest slowed Genel’s efforts to find a partner to develop the Miran and Bina Bawe gas fields, Genel is incr-easingly betting on their development after a rec-
ent survey showed a 40 percent increase in gas resources to 14.7 trillion cubic feet.
“Things are not on hold when it comes to Miran and Bina Bawe … The referendum did not accelerate anything but it is not bad news for Genel,” Ikaheimonen said.
Field development pla-ns, carried out by Baker Hughes , will be completed shortly and the company will carry out further test wells this year, it said.
Genel plans to spend between $25 and $40 million on the project in 2018 out of a total capital spending programme of $95 to $140 million. The search for a partner for the fields is ongoing, Ikaheimonen added.