Genel Still Seeking Gas Partners in Iraqi Kurdistan

UK-listed Genel says it has continued to seek farm-in partners at its Iraqi Kurdistan (KRI) gas fields.

In a trading update issued October 19, it said: “The company continued its efforts to maximise the value of its KRI gas assets, which included negotiations with potential farm-in partners for the upstream development of the Miran and Bina Bawi gas fields.” There is also the prospect of early development of oil at Miran, added Genel, although this was not finalised.

“The updated competent person's reports for Miran and Bina Bawi are on track to complete by the end of 2017,” it said, noting that during September the Kurdish Regional Government (KRG) had negotiated Rosneft's participation in funding construction of KRI gas pipeline infrastructure.

It should, however, be noted that Genel has been talking of progressing developing these gasfields for much of 2017. Meanwhile the military situation in the KRG region remains in flux, with Iraq's military this week saying it has retaken disputed areas held by Kurdish forces since 2014 – in many cases after fierce fighting with Islamic militants – following the September 25 referendum in the region that backed independence from Iraq.

Genel noted that its net equity exports from its two KRI fields, Tawke and Taq Taq, totalled 33,810 b/d in 3Q2017, with CEO Murat Ozgul saying that payments “are being received on time.” Seismic data was also being processed on a Genel-operated block onshore east Africa, in Somaliland.

Mark Smedley