Gross 2P reserves
bopd gross production in 2018
The Taq Taq licence area is located 60 km northeast of the Kirkuk oil field and the adjacent city of Kirkuk, 85 km southeast of the city of Erbil and 120 km northwest of the city of Sulaimaniah. The gross area of the Taq Taq licence area is approximately 951 square km.
The Taq Taq field has been producing since 2006. As of 31 December 2018 the field had produced over 215 MMbbls, generating well over $12 billion in sales. The overriding strategy for the Taq Taq field is to generate free cash flow flow and maximise gross ultimate recovery.
Taq Taq performed well in 2018, with production stabilising in the second half of the year through successful field management operations and workovers.
Drilling on the flanks at Taq Taq continued to bear fruit in H1 2019, and helped production at the field average 13,150 bopd in H1 2019, an increase of 3% year-on-year and 6% on the FY 2018 figure. The TT-32 well completed in January on the northern flank of the field with an initial flow rate of c.3,000 bopd. This was followed by the TT-20z well, on the western flank, which entered production at a rate of 2,000 bopd. Both wells have recently seen a decline in production and are now in line with Genel’s expectations, having been choked back to control water production.
The TT-33 well, on the southern flank, has tested water from three zones, and has not flowed oil at any significant rate, demonstrating that the free water level on the southern flank is higher than to the north. Going forward, the field partners will continue to target the flanks of the field, with a focus on horizontal wells to delay water production and maximise recovery. Wells continue to provide a positive return on investment, and Taq Taq generated $8.4 million of free cash flow in H1 2019. Two horizontal wells are scheduled to be drilled on the northern flank of the field in the second half of the year, and the TT-19x well is currently underway. Drilling in the second half of the year aims to deliver year-on-year production growth.