Oil producers in northern Iraq, including Genel and DNO, were forced to halt exports last year after a dispute between the Kurdish authorities and Iraq’s central government in Baghdad over whether they were properly authorized. The companies are waiting for an agreement in order to resume exports, a process that has been delayed by the failure of Iraqi politicians to form a new government since elections in March.
Money from the stake sales will help Genel develop production at Taq Taq, another northern Iraq concession it holds, Chief Executive Officer Mehmet Sepil said in the statement.
Genel is producing 60,000 barrels a day at Taq Taq and another 30,000 at Tawke, General Manager Orhan Duran said in a phone interview with BusinessWeek. He said it aims to increase those figures to 180,000 barrels and 60,000 barrels, adding that the stake sales to UI should be completed by the end of this year.