An employee works at an oil facility in the Kurdistan Region. File photo: Rudaw
ERBIL, Kurdistan Region — Genel Energy announced the Kurdistan Regional Government has made monthly payments for three-straight years and it is targeting a 15,000 bpd increase at the Peshkabir field by the end of the year.
"Payments received on a monthly basis for three years, and Genel now updates on cash receipts as part of our standard corporate reporting schedule," the London headquartered company announced.
Genel was presenting at the Pareto Securities' Oil & Offshore Conference Presentation 2018 in Oslo, Norway on Wednesday.
KRG made a record payment in August, not including payments because of increased production at Peshkabir.
"Should production continue to match current expectations then it would lead to an increase in proven and probable reserves at the field," Genel announced.
Tawke remains Genel's most productive field, while Peshkabir has now surpassed Taq Taq.
It noted "transformational opportunities in the portfolio with limited capital expenditure ahead of value creation events," specifying the "high-value oil potential at Bina Bawi" and gas development at Bina Bawi and Miran.
Genel reiterated they are the largest holder of reserves and resources in the Kurdistan Region at 5.5 BNboe and 150 MMboe.
It reported 32,100 bpd of net oil production for the first half of 2018 and "growth expected on all key metrics."
"In total, 11 wells drilling in H2 2018 with eight expected to be completed and contributing to production by the end of the year," explained Genel.
Because of multiple crises — a plummet in the global prices of crude, the ISIS conflict, Baghdad slashing Erbil's share of the federal budget — the KRG had struggled to make payments to energy companies.
Increasingly, the KRG has made back payments with international oil companies who are showing a willingness to re-invest and explore the Kurdistan Region's more difficult oil reserves.