Genel reached agreement to acquire stakes in the Chevron operated Sarta block, in the Kurdistan Region of Iraq, in January 2019. Production began in November 2020.

Genel acquired 30% equity in the Sarta licence by paying a 50% share of ongoing field development costs until a specific production target is reached, together with a success fee payable on achievement of a production milestone. Chevron retain a 50% interest in the Sarta licence and the Kurdistan Regional Government hold the remaining 20%.

Gross production averaged 6,400 bopd in 2021, with just over 2.5 million barrels having been produced from start up in late November 2020 to year end 2021, as the results of this early pilot production from the asset continues to help shape the view of full field development.

Oil has been delivered through more than 10,000 tanker journeys, without any lost time incidents or downtime due to COVID-19.

Drilling and completion operations at Sarta-1D concluded in November 2021, with successful testing carried out in Q1 2022. During testing, production was achieved from multiple zones and fluid samples were acquired successfully. The upper zones produced dry oil while the lower zones produced a mixture of oil and water, in line with expectations.

The well entered production on 8 March 2022, initially at a rate of c.2,500 bopd from the upper zones only, to allow dry oil production while monitoring interference effects with the nearby Sarta-2 and Sarta-3 wells.  

Using the experience of other fields in the KRI, we are focused on producing and developing Sarta in the most appropriate and cost-effective way possible using our produce, appraise, and develop philosophy. Oil production from Sarta-1D was fast tracked, with a short c.2 km flowline installed in Q4 2021 removing any lag time between well testing results and monetisation of the resource through the adjacent early production facility.

Following the initial results of production from the Sarta-2 and Sarta-3 wells, the Viking I-21 Rig moved from the Sarta-1D site to Sarta-4 to workover the legacy exploration well for use as a produced water disposal well, which will help optimise production. Once complete, Sarta-4 will allow production from the lower zones of Sarta-1D, with the added the water disposal also allowing the managing and maximisation of production from Sarta-2 and Sarta-3.   

 

The Sarta-5 and Sarta-6 step out wells, designed to appraise the field away from the pilot production facility, are key in resolving the current uncertainty over the size and shape of the Sarta field. Drilling and completion operations concluded at Sarta-5 at the end of 2021, with well testing set to begin shortly, and the Sarta-6 well has now spud.

In 2021, in line with our focus on reducing emissions, Genel initiated engineering studies on Gas and Emissions Management at Sarta including the potential use of renewable sources to help power our operations. The work will be matured in 2022 allowing for concept selection, informed by the results of Sarta 5 and Sarta 6.

As we took over operatorship on 1 January 2022, we will be increasing our social footprint in the region as a key part of our Genel20 activities.