Genel has interests in three producing fields in the Kurdistan Region of Iraq, Taq Taq, Tawke, and Peshkabir, which generate material free cash flow.
As at 31 December 2018, Genel had estimated net proven and probable (2P) reserves of 155 MMbbls net to Genel Energy.
Our low cost, rapid return assets in the Kurdistan Region of Iraq produced 33,700 bopd in 2018, and is set to rise from that figure in 2019 (production was 37,400 bopd in H1 2019). Production costs in the KRI are amongst the lowest in the world, Genel generated $164 million in free cash flow in 2018, and expects well over $100 million of free cash flow in 2019, even after significant investment in growth. In H1 2019 Genel generated free cash flow of $57 million.
Taq Taq, Tawke, and Peshkabir 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.