Tawke field in Iraq sees fall in production

Genel Energy has provided an update on the production levels at the Tawke licence in the Kurdistan Region of Iraq after Norway's DNO, as operator, issued an update on licence activity. 

The fall in gross production is the result of no new wells being drilled. Genel said in a statement that gross production at the Tawke licence, containing the Tawke and Peshkabir fields, absent drilling of new infill wells to arrest natural field decline, is expected to average 100,000 bopd in 2020. This reflects a drop from 115,210 bopd in Q1 2020 to 100,000 bopd in Q2 2020 and 90,000 bopd over the balance of the year.

The Tawke licence exit rate at year-end 2020 is projected at 85,000 bopd, absent any new wells. The operator believes the reduction in oil production is reversible with a restart of drilling as and when the market recovers. Production continues to be split approximately 55-45 between the Tawke and Peshkabir fields.

DNO stated that two third-party rigs remain warm stacked at the Tawke and Peshkabir fields and can quickly be mobilised if oil prices climb and export payments are regularised.

Genel Energy added that that payments have been received from the Kurdistan Regional Government for oil sales during April 2020. The Taq Taq partners have received a gross payment of $1.9 million, with Genel's net share of the payment being $1.1 million.The Tawke partners have received a gross payment of $8.5 million, with Genel's net share of the payment being $2.1 million.