What it does
Genel Energy PLC (LON:GENL) is the largest holder of reserves and resources in the Kurdistan Region of Iraq, where it operates the Taq Taq and Tawke oil fields, in which it owns 44% and 25% stake respectively.
In the same region, it is also planning a drilling campaign at the Qara Dagh field where it envisages some 200mln barrels of crude, while the Sarta field, where it has partnered with US giant Chevron, is set to see a mid-2020 startup date.
It also has exploration acreage in Morocco, at the offshore Sidi Moussa licence, and Somaliland, where it recently bought out its partner East Africa Resource Group in the SL10B13 onshore block, estimated to hold around 200mln barrels of oil.
How it's doing
Genel updates investors with oil sales payments from the Kurdistan Regional Government on a monthly basis. Override payments will resume with the January 2021 invoice, translating into over US$5mln of additional cash proceeds each month assuming the prevailing oil price.
In November, the oiler declared ‘first oil’ at the Sarta field, where the company has a 30% stake alongside Chevron, expected to achieve stable production levels during the first quarter of 2021.
What the boss says: Bill Higgs, chief executive
"First oil at Sarta is an important strategic and operational milestone for Genel, not least given the challenges presented by COVID-19 in 2020."
“In that context, progressing Sarta to first oil has been a tremendous achievement and a testament to the alignment and co-operation of the field partners and contractors.”
“Already the only multi-licence producer in the Kurdistan Region of Iraq, the addition of Sarta further diversifies our production and cash flows. We look forward to the results of our well programme in 2021, which is designed to further appraise the potential of the field. This will enable us to work with Chevron to optimise the value of the asset in the years ahead."