Gross 2P reserves
bopd gross production in 2019
The Taq Taq licence area is located 60 km northeast of the Kirkuk oil field and the adjacent city of Kirkuk, 85 km southeast of the city of Erbil and 120 km northwest of the city of Sulaimaniah. The gross area of the Taq Taq licence area is approximately 951 square km.
The Taq Taq field has been producing since 2006. As of 31 December 2018 the field had produced c.220 MMbbls, generating well over $12 billion in sales. The overriding strategy for the Taq Taq field is to generate free cash flow flow and maximise gross ultimate recovery.
Production at Taq Taq was robust in the first half of 2019, averaging 13,150 bopd, as drilling on the flanks continued to be successful. The TT-32 deviated well completed in January on the northern flank of the field, followed by the TT-20z well on the western flank, and both added production of over 2,000 bopd. These wells then saw a decline in production and were choked back to control water production. Following the testing of water from the TT-33 well, on the southern flank, production reduced in the second half of the year, and the overall average for 2019 was 11,960.
The potential of the southern flank is under evaluation, and Genel has since refocused efforts on the northern flank of the field. The TT-19x well was successfully put on production in the second half of the year with a rate of 1,500 bopd, and has been on plateau for five months. The TT-34 horizontal well entered production in December at over 2,000 bopd, and field production has increased to average 12,300 bopd in 2020 to date. The latest well on the northern flank of the field, TT-35, spud on 6 January and drilling is ongoing. Further activity at Taq Taq is focused on maximising cash generation. Given the current oil price environment and capital efficiency of the asset, Taq Taq is not a current capital allocation priority, although this will be reassessed as external conditions improve.