Tony Hayward (pictured), Chairman of Genel Energy, has given an update on the business at the Company's Annual General Meeting this morning:
Genel has a clear strategic focus - maximising the generation of free cash flow from our oil assets, accelerating the recovery of the receivable for unpaid oil sales, and crystallising value from the KRI gas business.
The Tawke field continues to perform in line with expectations, and drilling success at Peshkabir is expected to add to production from the end of 2017.
While production at Taq Taq has continued to fall in 2017 the rate of decline has recently slowed, although it remains too early to extrapolate long-term conclusions from this trend.
In the year to 31 May 2017 net production to Genel has averaged 37,700 bopd. On a gross basis, Tawke has averaged 110,000 bopd, and Taq Taq 23,300 bopd in the period. Production from Tawke in May 2017 averaged 108,000 bopd, and for Taq Taq 17,000 bopd.
Additional investment at Taq Taq will be targeted and appropriate in order to generate free cash flow. At Tawke, as previously announced, the receipt of regular payments for oil exports has led to an expansion of the 2017 work programme to include eight new production wells, of which six are Cretaceous and two shallow Jeribe wells.
We have now received oil export payments for 18 consecutive months since September 2015. These payments resulted in Genel generating free cash flow in 2016.