Genel Energy's production and revenues rise in 2013

15th Jan 2014 09:34

Oil company Genel Energy said the completion of the Kurdistan Region of Iraq (KRI) independent pipeline infrastructure has paved the way a steady increase in export volumes this year.The first KRI pipeline oil has arrived at Ceyhan in Turkey and the Kurdistan regional government (KRG) has announced that first export sales are expected to commence in the "near future, and ramp up over the remainder of the year".In November the government of Turkey and the KRG signed a Gas Sales Agreement governing the export of natural gas from the KRI to Turkey.The agreement calls for an initial 4bn cubic meters per annum (bcma) of gas exports from 2017, rising to 10bcma by 2020 and a the option of then increasing to 20bcma.Genel anticipates that the Miran and Bina Bawi fields will deliver the gas supply to underpin the agreement.Drilling is also underway on high impact African assets, with four wells set to be drilled this year."Overall, 2014 is shaping up to be another very exciting year for Genel," said Chief Executive Tony Hayward. The company said net working interest production for 2013 averaged 44,000 barrels of oil per day (bopd) in line with 2012. However, volumes in the fourth quarter were impacted by a fire at the Taq Taq Tanker Loading Station in November so the field operated at a reduced rate through much of November and December. Revenues for 2013 totalled $350m, up from $333m in 2012, within the company's guidance range of $300-400m.The production guidance for 2014 is set at 60-70,000 bopd, which would represent a 50% increase on last year. The 2014 revenue guidance is set at $500-600m.Shares dipped 0.09% to 1,084p at 10:17 on Wednesday.RD