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Genel Energy PLC says operator DNO ASA highlights production increase at Tawke PSC in Kurdistan

The group said production at the Tawke licence increased to 113,700 barrels of oil per day in the third quarter, reversing earlier coronavirus-related declines

(LON:GEN) noted that DNO ASA, as operator of the Tawke PSC in Kurdistan, in which Genel 25% working interest, has issued an update on licence activity.

The group said production at the Tawke licence increased to 113,700 barrels of oil per day (bopd) in the third quarter, reversing declines resulting from a reduction in activity triggered by the instability caused in the wake of the coronavirus (COVID-19) pandemic.

READ: Genel Energy sees cash boost as it completes US$300mln bond issue and receives August oil payments

It noted that third-quarter 2020 production was split 50:50 between the Tawke and Peshkabir fields, with production up 12% from the prior quarter following a campaign of quick turnaround, low-cost well interventions and the start-up of the Kurdistan Region of Iraq’s first enhanced oil recovery project.

Genel said this production performance was delivered with a one-third reduction in 2020 spend versus original budget, which led to fewer drilled wells and instead the launch of a well intervention campaign at Tawke and Peshkabir, with both fields outperforming expectations.

The group noted that operator DNO expects to exit the year with Tawke licence production at third-quarter levels.

It also said the Peshkabir-to-Tawke gas capture and reinjection project, in operation since mid-year, is continuing to cut gas flaring and greenhouse emissions by half at Peshkabir to 7 kilograms CO2 equivalent for each barrel of oil equivalent produced, while unlocking additional oil at Tawke.

By the end of October 2020, two billion cubic feet of gas that otherwise would have been flared was injected into Tawke, already delivering a positive production response at the field, and at the same time reducing field water production, Genel added.

In a later separate statement, Genel Energy also announced details of payments that have been received from the Kurdistan Regional Government for oil sales during September 2020.

It said the Taq Taq partners have received a gross payment of $4.0mln, with Genel’s net share of the payment being $2.2mln, while the Tawke partners have received a gross payment of $30.2mln, with Genel’s net share of the payment being $7.4mln.

 — Adds details of oil sale payments —

Read More: Genel Energy PLC says operator DNO ASA highlights production increase at Tawke PSC in Kurdistan

2020-10-29 07:15:00

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