Genel has recommenced drilling in Taq Taq oilfield to increase oil production in Iraqi Kurdistan after KRG's struggle to pay producers for oil exports.
“Drilling work will start imminently, in the next few weeks,” said Genel CFO Ben Monaghan.
“It’s a symbolic restart of our investments.”
Genel said they will invest $80-120 million this year in Iraqi Kurdistan even though the oil producer is still owed more than $400 million by the KRG for oil exports.
Even though there has been a 40% drop in oil prices since last year meaning oil is at $30/barrel, Monoghan says Genel's oilfields have a $20/barrel.
This new system will allow for oil producers to have a more predictable monthly export payment from KRG. Kurdistan Regional Government has been making payments since September 2015 to oil companies.
According to the Genel website, the Taq Taq oilfield has gross reserves of 541 million barrels of oil.