Output At Key Kurdistan Oil Field Could Fall 60% in 2017

Anglo-Turkish firm Genel suffered an annus horribilis in 2016 and a trading update released this week suggests things are only going to get worse in 2017.

Genel confirmed this week that average output from its flagship Taq Taq field (Genel 44% op, Sinopec 36%, KRG 20%) fell 48% last year to just 60,100 b/d. In a trading and operations update released 24 January, the firm says it expects production to average just 24,000-31,000 b/d in 2017 – a huge output fall of 48-60% (see chart 1).

Following on from its relinquishment of the Dohuk license last year and the ongoing relinquishment of Ber Bahr, Genel now plans to sell its remaining 40% operating stake in the Chia Surkh license to Turkish partner Petoil. Once the transaction has been completed, Petoil will hold an 80% stake at the asset, while the KRG will have the remaining 20%. (CONTINUED - 1310 WORDS)


chart 1: Taq Taq: Latest Genel Output Forecasts Further Downgrade Expectations (‘000 B/D)
chart 2: Dno Pulls Away From Rivals As Highest Paid Ioc In Krg ($Mn, 2016 Payments For Output)
chart KRG Crude Export* Revenue Remains Stubbornly Low As Debt Servicing Takes Its Toll ($mn)