Genel generates material and sustainable free cash flow, which more than covers investment in growth assets.
The Sarta field, partnering with Chevron, will add to production in the summer of 2020 and has the potential to be one of the largest fields in the Kurdistan Region of Iraq.
The development of the Bina Bawi and Miran fields has the potential to create significant value for both Genel and the KRG. There is the potential for early oil at Bina Bawi, and the gas assets can assist the Kurdistan Regional Government in satisfying domestic gas demand and its obligations under the KRG-Turkey Gas Sales Agreement.
In January 2018 Bina Bawi and Miran CPRs confirmed a c.45% uplift to gross 2C raw gas resources to 14.8 Tcf. The upstream part of the project has been materially de-risked, with 1C volumes more than sufficient for the gas volumes required under the gas lifting agreement. Following the CPR, further reservoir engineering has demonstrated the viability of high-rate gas wells, which in turn more than halves the number of wells required to produce the volumes under the gas lifting agreement, materially reducing the overall cost of the project.
Field development plans for both Bina Bawi and Miran oil and gas are under discussion with the KRG, and may entail a phased development approach in order to reduce initial capital expenditure and achieve the earliest date for first gas. An extension to the conditions precedent is expected to be granted shortly.