24th Jan 2017 08:03
LONDON (Alliance News) - Genel Energy PLC said Tuesday that it expects work programmes on its Taq Taq and Tawke oil fields in the Kurdistan region of Iraq to continue in 2017.
Genel said its net production for 2016 overall averaged 53,300 barrels of oil per day, consisting of 26,500 bopd from the Taq Taq field and 26,800 from the Tawke field.
Genel said for 2016 sales it invoiced a total of USD210.0 million and has received USD153.0 million for those sales, with the remainder owing from the Kurdistan Regional Government for fourth quarter sales. Total cash proceeds for 2016 were USD207.0 million, including historical receivables.
In January 2017 to date, net production from the two fields has averaged 44,000 bopd. Genel put its 2017 guidance at between 35,000 and 43,000 bopd, assuming the delivery of the work programme in the Taq Taq field. The company noted the work programme is dependent on the results of development drilling and payments from the Kurdistan Regional Government.
Genel forecast 2017 capital expenditure on the two fields of between USD50 million to USD75 million, with additional USD40 million expenditure for exploration in Africa, principally in Morocco.
The company estimated its 2017 operating expenditure on its Iraqi fields at between USD30 million and USD35 million.
"2016 was a major step forward for the monetisation of oil exports from the Kurdistan Region of Iraq. We received USD207 million in cash proceeds for oil sales and receivable recovery. These payments in turn allowed for work programmes to resume at Taq Taq and Tawke. The KRG has confirmed that payments will continue, allowing us to plan with confidence for 2017," said Murat Ozgul, chief executive of Genel.
By Adam Clark; [email protected]
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