Genel Energy strikes oil and stays on track for year’s targets

Suzie Neuwirth
OIL EXPLORER Genel Energy announced yesterday that it has maintained its production guidance, with a new oil discovery in the Kurdistan region of Iraq.

The targets for the year remain at 45,000 to 55,000 barrels of oil per day with revenues of $300m (£197m) to $400m.

Capital expenditure for 2013 is expected to come in at $400m to $500m.

“Genel has started 2013 strongly with a significant oil discovery at Chia Surkh, very encouraging results so far from our appraisal wells and good progress made across the board in our major development projects,” said chief executive Tony Hayward.

“As political momentum continues to build and the construction of independent regional infrastructure moves forward rapidly, it is evident that 2013 is set to be a highly significant year for both Genel and the Kurdistan region’s oil and gas industry.”

Exports to Turkey commenced in January, with volumes expected to rise to 15,000 to 20,000 barrels of oil per day over the rest of the year.

Genel was created in 2011 as a result of the reverse acquisition of Turkish Genel Enerji by investment company Vallares, led by former BP chief executive Tony Hayward, with financier Nat Rothschild and banker Julian Metherell.