Qara Dagh

Genel reached agreement to acquire stakes in the Chevron operated Qara Dagh block, in the Kurdistan Region of Iraq, in January 2019.

Genel acquired 40% equity in the Qara Dagh appraisal licence and became the operator through a carry arrangement, covering activity for the QD-2 well.

Qara Dagh offers an exciting appraisal opportunity. The QD-1 well, completed in 2011, tested light oil in two zones from the Shiranish formation. The QD-2 well location is  c.10 km to the northwest of QD-1, and aimed to test a more crestal position on the structure with a high angle well to maximise contact with reservoir fractures.

The well was side-tracked in response to encountering more complex geology above the target reservoir than expected. Two further side-tracks have been initiated, but the licence partners have now concluded that it is impractical to continue the drilling operations from this wellbore in an attempt to reach the primary objective because of insurmountable technical problems. The decision was therefore taken to suspend QD-2 at the start of 2022, with the minimum work obligation satisfied.

Licence partners Genel and Chevron will conduct a thorough evaluation of the QD-2 well and its results in 2022 to inform next steps on the licence.

Our social investment programme is extensive around Qara Dagh, working with local companies to deliver projects that respond to the requirements of local communities. To date a local primary school has been renovated and secondary school refurbished, a football pitch constructed, a road restored, and clean water provided to local villages. There are also over 300 local people employed at Qara Dagh, and contracts awarded to 24 local companies.