We have over a decade’s experience of operating in the Kurdistan Region of Iraq.
The Kurdistan Region of Iraq is a vibrant, democratic society, with a population of just over five million people. Plentiful natural resources have provided the bedrock of the KRI’s development, and the Kurdistan Regional Government has a stated goal of developing these resources while maintaining democracy and economic progress along with a clean environment and wealth distribution.
The oil industry has developed rapidly in the KRI. The commencement of oil exports through the KRI-Turkey pipeline by the KRG in 2014 was a landmark event, and has helped production rise from 75,000 bopd in 2011 to over 600,000 bopd by the end of 2015.
Following the growth in the oil industry, gas reserves are key to the next phase of the KRI’s development, powering the economy and providing Turkey with a significant percentage of its gas requirements. Genel, through the world‑class Miran and Bina Bawi fields, is set to be the anchor supplier.
The Kurdistan Region of Iraq remains safe and secure. The rise of ISIS placed a significant strain on the KRI, as refugees and internally displaced people seeking sanctuary in the KRI boosted the population by 30%. The financial strain of this support, compounded with the fall in the oil price and the failure of Baghdad to make budgetary payments, left the KRG struggling to pay its salary obligations and recompense oil companies for their production.
Against this difficult backdrop, the Kurdistan Regional Government has moved forward impressively with economic reforms, which are designed to reduce costs and increase revenues.
This has helped the KRG to make monthly payments for oil exports since September 2015, which have totalled over $700 million net to Genel as of June 2018. On 1 February 2016 the Ministry of Natural Resources confirmed that regular and predictable oil export payments would be based on monthly production entitlement, with additional monthly payments equivalent to 5% of the gross monthly netback revenue of fields made towards the recovery of the receivable.
This arrangement was replaced by a definitive agreement with the KRG on 24 August 2018. Under this agreement, in addition to proceeds for current sales Genel will receive 4.5% of Tawke gross field revenues for the five year period from 1 August 2017 to 31 July 2022, and CBP over the life of field is eliminated. At the same time, outstanding receivables relating to unpaid entitlements for past oil sales have been cancelled.
As a key player in the KRI natural resources industry, we aim to have a positive and sustainable impact on the region, powering economic growth and working in partnership to identify and meet community needs.
paid to IOCs in 2016
barrels - KRG exports in 2015