“We continue to see progress,” said Genel CFO Luke Clements. “It’s painfully slow. But it’s not like we’re close and then it all blows up. It’s just small steps, but with good progress.”
“We have cut all non-essential activity and significantly reduced spend, while developing a new source of income through domestic sales,” said Weir.
Members of the producer group would not be in a position to produce oil for export until it is clear how they will be paid, it said.
APIKUR reported that its members had cut spending by around $400mn in 2023, with plans for 2024 in doubt.
ShaMaran said it would return to action only when Kurdistan has solved both the pipeline and payment problems.
“The business is now determined to add new revenue streams that build a stronger business”, said CEO Paul Weir.
Genel is planning to drill a well on the SL10B13 block, in which it has a 51% stake and is the operator.
Genel Energy has said its Sarta field, in Kurdistan, has fallen short of expectations and the company will need to impair the asset’s value.
Genel Energy has confirmed interim CEO Paul Weir to take over the role for good, with immediate effect.
Genel Energy CEO Bill Higgs is stepping down with immediate effect after a vote went against him at the recent AGM.
Shareholders at Genel Energy have rejected the election of three directors at today’s AGM.
Genel Energy has completed the Sarta-5 appraisal well but reservoirs appear tight and it failed to flow.
Genel Energy has halted work on the QD-2 well in Kurdistan because of “insurmountable technical problems”, the company has acknowledged.
Genel Energy has signed a farm-out deal with OPIC Somaliland Corp. (OSC), backed by Taiwan’s CPC Corp. on a block in Somaliland.
Genel Energy will seek compensation from Kurdistan Regional Government (KRG) following the cancellation of its Bina Bawi and Miran production-sharing contracts (PSCs).
Kurdistan has issued a notice to Genel Energy that it intends to terminate licences on Bina Bawi and Miran.
Kurdistan has told producers that it is cutting payments for oil production, in light of continued pressure from COVID-19.
The Tawke licence in Kurdistan produced 110,300 barrels per day in 2020, DNO has reported, down from 124,000 bpd in 2019.
Chevron has reached first oil at the Sarta field, in Kurdistan, from an early production facility.
DNO’s Peshkabir gas capture and injection project, in Kurdistan, has launched and already captured 1 billion cubic feet of gas injected, in a major move to reduce emissions.
Genel Energy reported an operating loss of $340 million for the first half of the year, but still generated $6.5mn of free cash flow.
DNO and Genel Energy have cut production estimates and spending this year in Kurdistan, although allowing that work could resume should prices strengthen.
Genel Energy has cut capital expenditure to just over $100 million for 2020, while operating expenditure will be reduced by 10% to around $40mn.
Given the current state of the oil market, Sterling Energy is becoming more confident in executing a deal with an onshore low-cost operator.
Somalia is taking steps to attract foreign investment to its energy sector but challenges remain, most notably in how the federal government can integrate its policies with those of the state governments.