Genel has interests in two of the largest producing fields in the Kurdistan Region of Iraq, Taq Taq and Tawke, with access to local and international markets.
These fields have a currently estimated gross proven and probable (2P) reserves of 715 million barrels of oil (212 mmbbls net to Genel Energy) and gross proven, probable and possible reserves of over one billion barrels of oil.
Net working interest production in H1 2016 averaged 56,400 bopd, a decrease of 36% on H1 2015. At Taq Taq, steps were taken to counter natural decline by actively managing water ingress in existing development wells, while both fields were affected by the extended shut-in of the KRI-Turkey pipeline in February and March 2016.
Despite the disappointing revision of our reserves at Taq Taq, Taq Taq and Tawke remain low-cost oil fields by any global benchmark, and the two comprise a robust oil business well positioned in the current oil price environment, set to be significantly cash generative going forward.
During 2013, the KRG completed the construction of its export pipeline infrastructure, giving it an independent route to export its oil production to world markets.
In January 2014, the KRG announced that initial quantities of crude oil from the Tawke field had flowed through the pipeline system and arrived into storage at the port of Ceyhan on Turkey’s Mediterranean coast. Since that time, the capacity and integrity of the pipeline system through which oil is exported from the KRI to the port of Ceyhan on the Mediterranean coast has been upgraded.
The pipeline consists of a number of sections. The first, from the Taq Taq field to the Khurmala Dome, has capacity of 150,000 bopd. The second section, from Khurmala to the KRI border, has capacity of 700,000 bopd. At the border, both the KRI pipeline and the dedicated export pipelines from the Tawke field, which have capacity in excess of 250,000 bopd, are tied into the 40-inch section of the Iraq-Turkey pipeline. The 40-inch section currently has 700,000 bopd of capacity.
Exports to Ceyhan, and sales to the international market, are now regular and predictable, and form the bedrock of the Kurdistan Region of Iraq economy.