Genel has interests in two producing fields in the Kurdistan Region of Iraq, Taq Taq and Tawke, with access to local and international markets. We will look to maximise recovery from our oil fields while controlling costs, with an overall aim of generating positive cash flow from operations.
As at 31 December 2016, Genel fields had estimated gross proven and probable (2P) reserves of 597 million barrels of oil (161 mmbbls net to Genel Energy) and gross proven, probable and possible reserves of over one billion barrels of oil. Net working interest production in the first half of 2017 averaged 37,100 bopd.
The Taq Taq field has been producing since 2006. As of 30 June 2017 the field had produced over 210 mmbbls, generating over $12 billion in sales revenue. Taq Taq generated $32 million in free cash flow in the first half of 2017.
Tawke continues to perform well, and successful testing at Peshkabir has already seen production trucked to the Tawke export terminal at Fishkhabur. The installation of an early production facility is expected by year-end 2017 including a flowline connection to the Tawke export terminal at Fishkhabur.
Taq Taq and Tawke remain low-cost oil fields by any global benchmark, and are set to be cash generative going forward.
During 2013, the KRG completed the construction of its export pipeline infrastructure, giving it an independent route to export its oil production to world markets.
In January 2014, the KRG announced that initial quantities of crude oil from the Tawke field had flowed through the pipeline system and arrived into storage at the port of Ceyhan on Turkey’s Mediterranean coast. Since that time, the capacity and integrity of the pipeline system through which oil is exported from the KRI to the port of Ceyhan on the Mediterranean coast has been upgraded.
The pipeline consists of a number of sections. The first, from the Taq Taq field to the Khurmala Dome, has capacity of 150,000 bopd. The second section, from Khurmala to the KRI border, has capacity of 700,000 bopd. At the border, both the KRI pipeline and the dedicated export pipelines from the Tawke field, which have capacity in excess of 250,000 bopd, are tied into the 40-inch section of the Iraq-Turkey pipeline. The 40-inch section currently has 700,000 bopd of capacity.
Exports to Ceyhan, and sales to the international market, form the bedrock of the Kurdistan Region of Iraq economy, and consistency in sales from Ceyhan has allowed the receipt of consecutive monthly payments to Genel since September 2015.