Genel Energy gains from opening of Kurdish region pipeline to Turkey

The opening of the pipeline in May allowed the autonomous region to by bypass the Iraq network in a move that has been disputed by Baghdad.

The Kurdistan Regional Government controls 45 billion barrels of oil, which has drawn international companies such as Genel, ExxonMobil and Total. Behrouz Mehri / AFP
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The opening of new export pipeline to Turkey from Iraq’s Kurdish region has boosted production for Genel Energy.

The oil exporter headed by Tony Hayward, the former BP chief executive, said production averaged 84,000 barrels per day in June compared to 63,000 bpd for the whole of the first half.

The opening of the pipeline in May allowed the autonomous region to by bypass the Iraq network in a move that has been disputed by Baghdad.

It comes amid heavy fighting between Sunni militants and the government alongside Shiite militas – but which has not yet had a major impact on oil production in the country.

While oil prices have been driven higher in recent weeks on expectations that the violence would hit exports, the price has fallen as the immediate threat has waned.

“Genel’s operations in the Kurdistan Region of Iraq remain safe and secure,” the company said in a trading statement yesterday.

Genel maintained its full year production and revenue guidance at 60,000 to 70,000 bpd, which translates to revenue of between $500 million and $600m.

Iraq, excluding the Kurdish region, holds 150 billion barrels of proven crude reserves in the world’s fifth-biggest deposits, according to Bloomberg data.

The Kurdistan Regional Government controls 45 billion barrels, which has drawn international oil companies such as Genel, ExxonMobil and Total.

Kurdish oil sales are firmly opposed by the central government in Iraq, which says they violate the constitution.

Iraq is expected to ship 2.8 million bpd this month, approaching record highs.

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