Genel Energy, the Iraq-Kurdistan focused energy producer, saw a rise in 2019 production, although payment delays from Kurdistan Regional Government caused revenues to slide.
During the year, the company received US$317 million in cash proceeds, a dip from 2018’s $335 million. The company said it has yet to receive $54 million in payments from KRG.
From its main two production fields of Tawke and Taq Taq, Genel’s net production rose to 36,250 barrels of oil per day during 2019, compared with 33,690 in the year-earlier period. Genel has a 25 per cent working interest in Tawke and 44 per cent interest in the Taq Taq fields.
Meanwhile, the company said the Bina Bawi project, in which has a 100 per cent stake, has seen ‘significant’ progress and the company has reached an understanding with KRG in terms of commercial terms its oil and gas development. Genel is now awaiting a draft legal agreement reflecting the progress.
Bill Higgs, chief executive of Genel, said 2019 “was a successful year for Genel, and we continue to deliver on our promises. We increased our highly cash-generative production in line with guidance, paid a material dividend, grew our operating capabilities, and added new assets to the portfolio that will bear fruit in 2020.”
The company’s investment plans are moving forward and is covered by expected free cash flow, Higgs said, adding that Genel will see production diversify and increase as its Sarta field comes onstream in the summer.
The company has a 30 per cent interest in the field, where civil construction work is continuing on schedule.
