Genel Energy, the UK oil producer operating in Iraq’s Kurdish region, fell by a record in London trading after cutting the reserves estimate for its largest field by almost half.
Genel Energy has announced that Jim Leng is to step down from the board in April.
Shares of Gulf Keystone, Genel Energy and DNO rose after the Kurdistan Regional Government clarified its system of export payments to foreign oil companies.
The Kurdistan Regional Government has dished out its latest round of payment for oil exports.
Genel Energy has confirmed that the Taq Taq field partners have recieved a $30million export payment from the Kurdistan Regional Government in Iraq for oil exported through the Kurdistan region of Iraq-Turkey pipeline.
Genel Energy has struck a deal with Austrian producer OMV to acquire its stake in a field in the Kurdistan Region of Iraq. The company will acquire a 35% share in the Bina Bawi field with an upfront payment of $5million. Genel Energy said a contingent payment of $70million will be payable once gas production exceeds the agreed threshold volumes from the Miran and Bina Bawi fields.
Kurdish oil producer Genel Energy has reiterated its commitment to the region, as it revealed its earnings are up for the first half of the year.
Tony Hayward has stepped into Genel Energy’s chairman role after Rodney Chase tendered his resignation. Murat Özgül, previously president of Turkey and KRI, has since been promoted to chief executive and appointed to the board. Hayward said: "Rodney has been a driving force in the establishment of Genel Energy as a respected London-listed company. It has been a great pleasure working with him, and on behalf of the Board and the Company I would like to express my sincere gratitude for his leadership through the IPO and over the past four years, which has helped make Genel the company it is today.
Genel Energy said it fell to a loss last year as it waited for money still owed from some of its fields in the Kurdistan Region of Iraq. The company said its expects to receive regular repayments this year. The oil producer made a full-year loss of $312.8million, compared with a profit of $186.5million in 2013.
Genel Energy said it will be making job redundancies in a bid to reduce costs. The company said its capital expenditure guidance has been lowered for 2015 by 30% to between $200 and $250million. The move marks a reduction of 70% compared with expenditure last year. A spokesman for the company said: “Headcount reductions and other efficiency measures are expected to reduce administrative expenses by 40% year on year in 2015.”