Genel gives Update on Trading and Ops

By John Lee.

Genel Energy has issued the following trading and operations update in advance of the Company's half-year 2015 results, which are scheduled for release on 6 August 2015.

Tony Hayward, newly-appointed Chairman of Genel, said:

"Production has grown rapidly in the first half of the year, increasing 41% year on year, with operational delivery driving record volumes above 100,000 bopd net to Genel on peak days.

"This increase has been integral in helping the Kurdistan Regional Government achieve its export goals, and the KRG is firmly committed to ensuring companies are paid in full for their production.

"Over 600,000 bopd of exports are now flowing to Ceyhan and, as distribution of the resulting revenues stabilises, the KRG is moving towards a financial position from which to make export payments to contractors.

Progress has also been made on our world-class Miran and Bina Bawi assets, the development of which provides a huge opportunity for both Genel and the Kurdistan Region of Iraq as a whole.  

"We are now working on putting in place all of the components to progress this transformational project to its development and ultimate monetisation."

KURDISTAN REGION OF IRAQ ("KRI") OIL PRODUCTION

• Net working interest production for H1 2015 averaged 88,800 bopd, an increase of 41% on H1 2014. The Company's net working interest production in May and June was 95,600 bopd
• The Company's 2015 production guidance is maintained at 90-100,000 bopd
• Gross production by field and sales route for H1 2015 is as follows:
• In H2 2015, Genel will seek to optimise the mix between domestic and export sales from Taq Taq and Tawke, balancing the benefit of near-term cash flows with the requirement for both fields to contribute to exports via the KRI-Turkey pipeline
• At Taq Taq, surface processing capacity stands at 150,000 bopd following the successful commissioning of a temporary production facility in Q1 2015. Completion and commissioning of the second central processing facility, which has planned capacity of 90,000 bopd, is on track for year-end 2015
• At Tawke, wellhead, processing and pipeline capacity was successfully doubled to 200,000 bopd during H1 2015. Record daily production of c.180,000 bopd was delivered in late May