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Genel Energy PLC on Tuesday noted progress in the resumption of oil exports from Iraq’s autonomous Kurdistan region, which suffered drone attacks in July. The London-based oil & gas mining firm has production assets in Kurdistan, where three of its oil fields were hit. The company also has prospects in Oman and Somaliland. Genel pointed to ‘recent statements and media reports’ suggesting the Iraqi government had reached an agreement with the Kurdistan regional government and international oil producers to resume the export pipeline from Kurdistan to Ceyhan. ‘The company welcomes the significant progress made to date... and believes that straightforward adjustments to currently proposed terms, and a payment plan for overdue receivables, would make the conditions for exports acceptable to the company,’ Genel said. ‘In an effort to resume exports as quickly as possible, the company continues to work with peers and relevant governments to achieve the appropriate conditions.’ DNO ASA, the Oslo-based operator of the Tawke field, and Genel’s partner in the joint venture, shared similar sentiment on Tuesday, but highlighted that agreements should ‘ensure payment surety for both past arrears and future exports based on the legal, economic and commercial terms of the production sharing contracts’. Its chair Bijan Mossavar-Rahmani said arrears owed to DNO ‘as the largest producer’ in region, ‘dwarf those of many of the others, which also means that our exposure to future payment risk is also substantially higher than any other company.’ DNO added that its chair had made proposals to Iraqi authorities for ‘easy fixes that can be quickly agreed,’ and that both DNO and Genel had increased spending to repair damage at Tawke and Peshkabir, another field in the area. ‘Further investments are planned to drill eight wells in the Tawke license in 2026 targeting gross operated production of up to 100,000 barrels a day,’ the Norwegian company noted. Genel Energy shares were down 1.0% at 76.30 pence on Tuesday afternoon in London. In its interim results, Genel said pretax loss narrowed during the six months ended June 3, to $3.5 million from $17.6 million a year earlier. Still, revenue fell 4.8% on-year to $35.8 million. According to Genel, oil production at Tawke remained ‘robust’ amid the export suspension. London-listed peer Gulf Keystone Petroleum PLC, which also operates in the Kurdistan region, in August cut its full-year production guidance, noting the drone attacks as it posted lower revenue for the first half of 2025. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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