Genel Energy will reduce its capital expenditure this year to USD 80 million-120 million, a decrease from $160 million last year, the Turkish oil producer operating in the Kurdistan Region of Iraq said Wednesday.

Genel Energy completes well

LONDON, July 7, 2016 – Genel Energy has successfully drilled and completed the first well of its 2016 Taq Taq work programme in the Kurdistan Region of Iraq, the company said in an operational update on Thursday. Genel has a 44% working interest in the field, which it jointly operates with DNO.

The TT-27x side-track well is flowing at a rate of some 3,000 bopd, and is expected to produce between 1,500 bopd and 5,000 bopd. The rig utilised, the VT-03 unit, will now be used to drill a side-track well of the TT-07 well, which is expected to take 60 days. Genel Energy anticipates it will drill a third side-track well later this year.

Production in Taq Taq averaged 69,000 bopd in the first half of 2016, the company said. Output from the Tawke, Genel Energy’s other oil-producing asset in the Kurdistan Region, averaged 102,000 bopd during the mentioned period. The company’s net production forecast for 2016 was revised downwards from a initial guidance of 60,000 bopd-70,000 bopd to between 53,000 bopd and 60,000 bopd.

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