Genel Energy said it expected to book about $1 billion in impairment to the 2015 value of its Taq Taq oilfield in Iraqi Kurdistan, citing reduced estimate for recoverable reserves there and falling oil prices.
Genel Energy, one of the main oil producers in Iraqi Kurdistan, forecast lower revenue and production for this year, hurt by weak oil prices, sending its shares down to a record low on Wednesday.
The company fo
Iraq's Kurdistan region said it had allocated $75 million of revenue from its direct crude oil sales to three international oil companies, whose payments have been disrupted by a dispute between Erbil and Baghdad.
Genel Energy has put all exploration work on hold for this year to rein in costs, the London-listed oil producer said waits nearly $400 million in oil sales payments from the Kurdistan Regional Government (KRG).
Genel Energy has signed an agreement with the Kurdistan Regional Government (KRG) to develop two huge gas fields that could supply Turkey with gas from the winter of 2017/18.
The Miran and Bina Bawi gas fields,
UK-based Genel Energy expects to export oil by pipeline from its fields in Iraqi Kurdistan by 2014, regardless of a political impasse between Baghdad and the semi-autonomous region.
It primarily sells its oil in Kurdistan's do