Iraqi Kurdistan-focused Genel Energy Plc reported on Feb. 14 a 40% replacement of proved reserves at its Taq Taq field, once considered the company’s flagship field.
“The 40% replacement of 1P reserves at Taq Taq follows the success of well TT-29w, and reflects the stability in cash-generative production that we have seen from the field in the second half of 2017,” Murat Ozgul, Genel Energy’s CEO, said in a statement.
Genel, however, said its proved plus probable gross reserves at Taq Taq were estimated at 54.7 million barrels (MMbbl) as of Dec. 31, lower than the 59.1 MMbbl as of Feb 28.
In January, Genel forecasted a fall in full-year production due to a continuing slide in output from the Taq Taq field after a well hit water in 2016.
The Kurdistan Regional Government’s independence referendum in 2017 that led to a military confrontation with Baghdad as well as sanctions from neighboring countries have also hurt Genel as it slowed the company’s efforts to find a partner to develop the Miran and Bina Bawe gas fields.
Bina Bawi gross 2C light oil resources were estimated at 37.1 MMbbl as of Dec. 31, compared to 13 MMbbl as of July 2013, Genel said.
Genel said the Bina Bawi field represents a “potentially attractive near-term development candidate” for the company due to its close proximity to export infrastructure.
Miran West gross 2C heavy oil resources were estimated at 23.7 MMbbl as of Dec. 31, compared to 52 MMbbl as of April 2013, Genel said, adding that it has taken a more conservative view and will only record 18.5 MMbbl of viable 2C contingent resources at the field.
U.S. energy firms this week reduced the number of oil rigs operating for a fourth week in a row with drilling slowing to its lowest in nearly a year, prompting the government to cut crude output growth forecasts.
The government said the increase in production limits comes as warmer weather reduces the amount of diluent needed to help oil sands bitumen flow through pipelines, increasing capacity.
U.S. oil producers sought on Jan. 23 to soothe OPEC's worries about losing market share, telling the group that investors in the U.S. firms wanted a reduction in growth and higher payouts.