Genel Energy PLC (LON:GENL) has told investors that average output from the 25%-owned Tawke production sharing contract in Kurdistan, Iraq is expected to reduce down to 100,000 barrels of oil per day (bopd) in 2020, assuming new wells aren’t drilled to arrest the natural decline.
Without new wells the 2020 exit rate is forecast to be marked at around 80,000 bopd.
In the first quarter, production from Tawke amounted to 115,210 bopd and in the second it was down to 100,000 bopd, while for the remainder of 2020 it is predicted at around 90,000 bopd.
“The operator believes the reduction in oil production is reversible with a restart of drilling as and when the market recovers.” Production continues to be split approximately 55-45 between the Tawke and Peshkabir fields,” Genel said in a statement.
It noted that two third-party-owned rigs remain ‘warm stacked’ at the Tawke and Peshkabir fields.
These rigs can be quickly mobilised for drilling if oil prices and export payments are “regularised”.
The Tawke PSC comprises the Tawke and Peshkabir fields, with the former contributing 55% of production volumes and the later contributing 45%.