Genel to reduce capex by USD 160 mln

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.

The company forecasts total revenue of USD 200 million-275 million and oil production of 60,000-70,000 bopd in 2016. This is down from revenue of USD 342 million and output of 84,900 bopd in 2015. The company assumed a per-barrel price of USD 45, but said it had a production cost of USD 2 per barrel.

“Against this backdrop, the recent receipt of four consecutive payments for pipeline exports is highly encouraging. These payments, totalling almost $100 million, have stabilised our receivable and maintained our healthy cash position,” Genel’s CEO, Murat Özgül, said.

The Kurdistan Regional Government resumed its payments to operators in September. Genel, along with oil and gas exploration companies Gulf Keystone Petroleum and DNO, produce a combined 300,000 bopd and were owed USD 1.7 billion for past exports. The delay ended after an eight-month stall, with December payments marking the fourth consecutive dispersal.

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