Genel Considers Impairment At Iraqi Kurdistan’s Sarta As Latest Well Flops

16 Dec 2022 Issue: 65 / 50 By: Jamie Ingram

Iraqi Kurdistan’s crude oil production has been stuck at around 415,000 b/d since the pandemic. Once seen as the next great frontier province, the next generation of field developments are proving underwhelming amid geological setbacks.

The November 2020 startup of the Sarta field in Iraqi Kurdistan marked a major milestone for the region as the first new field to enter production since 2017 (MEES, 27 November 2020). But more than two years later production has dwindled from initial levels and work on appraising new areas has flopped, leading operator Genel to this week announce an impairment review.

Production at Sarta (Genel 30%op, Chevron 50%, KRG 20%) has averaged just 4,000 b/d so far this quarter, Genel said on 13 December. This is flat with Q3, but well down on the 2021 average of 5,940 b/d, never mind the 1H 2021 average of 6,490 b/d. This is not the trajectory Genel envisaged when it farmed in to the block in January 2019 (MEES, 25 January 2019), and leaves output well below the capacity of Sarta’s 20,000 b/d early processing facility (EPF). (CONTINUED - 863 WORDS)