Iraqi Kurdistan-focused Oryx Petroleum confirmed in its second quarter results on 2 September that production from the Banan field restarted in July following its closure earlier this year due to low oil prices (MEES, 22 May). The 10,000 b/d Banan field is the largest in the Hawler license, and its shutdown saw the license’s output fall to an average of just 4,000 b/d for Q2. Hawler output recovered to 11,700 b/d in August.
The shut-in, combined with irregular payments from the KRG, proved extremely painful for the Canadian firm. With payments due on an outstanding $79.8mn loan agreement, a dealwas reached between primary shareholders Zeg Oil (22%) and AOG (67%) whereby AOG transferred its holdings to Zeg in order to settle the loan. Following the transaction, Zeg, a Kurdish conglomerate close to the dominant Barzani family, now owns 90% of Oryx. (CONTINUED - 137 WORDS)