Genel Energy PLC (LSE:GENL, OTC:GEGYY) revealed that DNO, the Norwegian oil and gas operator, has partially resumed operations at the Tawke field.
Genel holds a 25% working interest in this field and is presently selling its entitlement share of oil production to local trading firms.
This restart in operations comes after a four-month shutdown, which was initiated due to the closure of the Iraq-Turkey Pipeline export route.
While DNO has restarted partial oil production from the Tawke field for good integrity and reservoir tests, it continues to produce to satisfy the robust demand for Tawke oil.
The current average output from Tawke is approximately 40,000 barrels of oil per day. Half of this production is delivered to the Kurdistan Regional Government as its entitlement, while the remaining half is sold to local trading companies.
Genel also highlighted that the contract prices vary and are currently averaging slightly above 50% of the levels before the pipeline closure. However, payments are now made upfront and directly to the operator.
Meanwhile, the Peshkabir field, which also falls under the Tawke license, continues to remain shut-in.
