Genel Energy PLC (LSE:GENL, OTC:GEGYY) has disclosed that Norwegian oil and gas operator DNO has partially restarted operations at the Tawke field, of which Genel has a 25% working interest, and is currently selling its entitlement share of oil production to local trading companies.
The operations restarted following a four-month shut-in triggered by the closure of the Iraq-Turkey Pipeline export route.
DNO restarted partial oil production from the Tawke field to conduct well integrity and reservoir tests but has continued to produce to meet the strong demand for Tawke oil.
Tawke output is currently averaging around 40,000 barrels of oil per day, of which one half is delivered to the Kurdistan Regional Government as its entitlement and the balance is sold to local trading companies.
Genel noted that prices vary by contract and average just over 50% of pre-closure levels but payments now are made in advance and directly to the operator.
The Peshkabir field, also within the Tawke licence, remains shut-in.