Genel Energy says production recovers after hit from drone strikes
Genel Energy PLC on Wednesday said gross production levels are now back to around 80,000 barrels of oil per day, consistent with the levels before an interruption from drone strikes.
The London-based oil and gas firm said production is now consistent with levels achieved in the first half of the year.
In July, explosive-laden drones hit three oil fields in Iraq’s northern autonomous Kurdistan region, a day after a similar attack shut operations at a US-run field.
Genel said domestic sales prices averaged $31 per barrel in the quarter to the end of September, with the year-to-date average price at $33 per barrel, down from $35 a year ago.
The firm said it expects to receive an insurance payment by the end of the year of around $3 million for lost production arising from the drone strike.
On block 54 in Oman, Genel Energy said it has started work towards testing the discovered resource. The workover is anticipated to be completed around the end of the year, with testing results to follow around the end of the first quarter of 2026.
The company reiterated its guidance of net cash around the same level at the end of the year as the start.
‘Since our half year results in August, we have been delighted with the progress made on resuming maximum production from the Tawke and Peshkabir fields, with the two fields currently back to producing around 80,000 bopd. We now look forward to working with the operator to deliver an increased activity programme that can build on these production levels,’ said Chief Executive Paul Weir.
‘We are encouraged by the progress made on the operational resumption of Kurdistan exports, with reports of all Kurdistan oil production now flowing through the export pipeline and being sold at Ceyhan. We hope that the implementation of the export payment process is effective and sees international oil companies paid their full entitlement revenue at international prices, which could enable the company to participate and significantly increase its core business cash generation.’
Shares in Genel Energy were down 2.3% at 59.70 pence on Wednesday afternoon in London.
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