Genel has interests in two producing fields in the Kurdistan Region of Iraq, Taq Taq and Tawke, which generate material free cash flow.
As at 31 December 2017, Genel had estimated net proven and probable (2P) reserves of 150 MMbbls net to Genel Energy. Net working interest production in 2018 averaged 33,700 bopd, and is set to rise from that figure in 2019.
The Taq Taq field has been producing since 2006. As of 31 December 2017 the field had produced well over 210 MMbbls, generating over $12 billion in sales revenue.
Tawke continues to perform well, and Peshkabir production has exceeded expectations.
Taq Taq and Tawke remain low-cost oil fields by any global benchmark, and are set to be highly 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, form the bedrock of the Kurdistan Region of Iraq economy, and consistency in sales from Ceyhan has allowed the receipt of consecutive monthly payments to Genel since September 2015.