Genel Energy PLC (LON:GENL) shares started Thursday on the front foot as the Kurdistan oiler revealed that partner Chevron has inked a deal that envisages a 20,000 barrel per day crude processing facility at the Sarta field.
The London-listed firm holds a 30% stake in Sarta which is now advancing with a mid-2020 start up targeted.
Chevron has signed up contractor Oilserv for the construction, installation, operation and maintenance for Sarta’s central processing facility (CPF).
Genel described Sarta’s Phase 1 project as ‘a low-cost pilot development’. It noted that with the CPF the field’s crude will be processed before being transferred to a local facility for further distribution.
“Subsequent expansion investment decisions will be based on production behaviour plus a subsequent two to three well appraisal/development campaign,” Genel said.
Genel noted that Sarta’s Jurassic Mus-Adaiyah reservoir alone is estimated to host some 150mln barrels of ‘mid-case’ resources which makes ranks the project as being a similar size to the company’s Peshkabir field.