March 30 (UPI) -- Coming off a tough year in 2016, Genel Energy, which has a strong position in northern Iraq, said it was in partnership talks with a company in nearby Turkey.
The company in its latest financial report acknowledged the last three years were difficult. Lower crude oil prices last year meant poor returns for the exploration and production sector, operations near flagship production facilities in the Kurdish north of Iraq were clouded by security challenges and production from its regional Taq Taq field moved sharply lower in part because of reserve downgrades.
Net production from Genel last year averaged 53,300 barrels of oil per day, at the low end of its guidance for 2016 and down 37 percent from 2015.
While recognizing the significant downturn, spokesman Andrew Benbow told UPI there are opportunities emerging for the creation of value from its natural gas assets.
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"We are in talks with the state Turkish Energy Company in this regards," he said. "There is already a gas sales agreement in place between Turkey and the Kurdistan region of Iraq."
Genel said it would lean more heavily on the natural gas resources available in the Bina Bawi fields in the Kurdish north of Iraq as it looks to solidify its partnership with Turkey. Though the market for oil is improving, the company said the gas business was emerging as a potentially greater opportunity.
The main focus for 2017 for Genel is on building strategic partnerships in the gas business, followed by potential pipeline and financing deals for associated facilities.
Murat Ozgul, the company's CEO, said the development of the Bina Bawi and Miran basins could lead to the transformation his company needs.
"Genel has been central to the Kurdistan Region of Iraq's development as an oil province, and we now look forward to playing the same role in the development of gas exports which will provide a huge boost to the KRG's economy, " he said in a statement.
