The controversial new pipeline between Kurdistan and Turkey will raise production output by at least a third, oil firm Genel believes.
The company achieved production of around 44,000 barrels of oil from its Kurdish operations last year, and forecasts that number reaching up to 70,000 bod on a ‘relatively conservative basis’ once the Kurish Regional Government’s independent pipeline begins exports.
Former BP boss Tony Hayward, now chief executive at Genel, said the pipeline would open up more exports and potentially double revenue at the London-listed firm.
The pipeline, which has been flowing oil over the border from Kurdistan’s lucrative fields for the last few weeks – but output has been held there pending a resolution while Turkey sought a resolution with Iraq over Kurdish exports.
An end to the dispute is expected by the end of the month, with Hayward predicting Genel will reap the benefits of the new infrastructure over the next 12 months.
“The energy agreement between the KRG and Turkey and the completion of the KRI independent pipeline infrastructure has paved the way for steadily rising oil export volumes from Taq Taq and Tawke over the course of 2014,” he said.
The firm saw revenues of around $350million (£215million) for 2013, and set its predicted guidance for this year at $500million to $600million.