Afren says it expects its Kurdistan output to grow significantly once it finally completes a pipeline route from its operations in Kurdistan to Turkey.
The West Africa and Iraq-focused company is currently selling 2,500 barrels a day on trucks from the northern Iraqi region to the domestic market.
But that number is set to rise once the export line is completed by the end of the year.
“The pipeline is a positive step and we’ve agreed a tie- in,” said chief executive Osman Shahenshah
“The plan is to increase production substantially.”
The company maintained its guidance for full- year production for the whole company at 40,000 to 47,000 barrels of oil equivalent a day.
Output in the first half was 47,653 barrels a day, up 13 percent from a year earlier. The company will have to install a new platform in Nigeria, probably in the fourth quarter, and that will temper production, Shahenshah added.
The timing of the shutdown still isn’t certain and may be pushed back into next year. The company declined to give guidance on production in 2014.
Profit after tax from continuing operations fell 39 percent in the first half to $62 million. Shares dropped 2.8 percent this morning to 141.8p.