Genel Energy’s chief executive said he was approaching 2017 with confidence as the firm was closer than ever to monetising oil exports from the Kurdistan Region of Iraq.
Company leader Murat Özgül said: “2016 was a major step forward for the monetisation of oil exports from the Kurdistan Region of Iraq. We received $207 million in cash proceeds for oil sales and receivable recovery. These payments in turn allowed for work programmes to resume at Taq Taq and Tawke. The KRG has confirmed that payments will continue, allowing us to plan with confidence for 2017.”
Genel’s net production for 2016 averaged 53,300 bopd.
The company netted $201million cash proceeds for the year. Its 2016 operating expenditure totaled $61million – a significant drop of the $110million estimate.
Genel unrestricted cash balances total $408million, while its debt is $240million.
Earlier this month, Genel signed a Sales and Purchase Agreement to transfer its 40% interest in the Chia Surkh licence to its partner, Petoil, subject to approval by the Ministry of Natural Resources. Petoil will pay Genel an initial consideration of $2 million, and an additional $25million in staged payments contingent on future crude oil production from the Chia Surkh licence. Genel will recognise an impairment of the Chia Surkh carrying value of $198 million in its 2016 accounts.
Its production guidance for the year is expected to be between 35,000 and 43,000 bopd. Capital expenditure, net to Genel, for the Taq Taq and Tawke fields in 2017 is forecast to be $50-75million.