Genel Energy full-year production set to drop by a third

Kurdistan-focused oil business Genel Energy said on Thursday that full-year net production was expected to fall by a third, as output from its flagship Taq Taq oilfield in Iraq's north dwindled throughout the year.

Net production during the 12 months to 31 December fell 34% to 35,200 barrels of oil per day (bopd) from the 53,300 bopd drilled a year earlier.

Genel warned last June that the Taq Taq oil field in Kurdistan had seen a decreased output over the course of its first trading half but assured investors that the rate of decline had begun to slow.

The exploration and production firm said combined net production for 2018 from Taq Taq and Tawke, its additional field in the region, was expected to be close to fourth-quarter levels of 32,76 bopd on average, with Taq Taq accounting for 14,035 of those.

Genel also said it expects to spend about $95m to $140m for 2018, compared to about $95m in 2017.

The group received payments for oil sales every month of the year from the Kurdistan Regional Government, totalling over $260m net to Genel and leading to a $140m free cash flow for the year.

Genel's unrestricted cash balances stood at $162m as of 31 December 2017 thanks to a successful refinancing programme.