Proactive Investors - Genel Energy said operator DNO has started an orderly shutdown of the Tawke and Peshkabir oil fields in the Kurdistan Region of Iraq due to the closure of the pipeline to Turkey.
Peshkabir (Genel 25%) production was halted last night and plans drawn up to conduct deferred maintenance.
Tawke's ( also 25%) production shutdown has started but will take an additional day or so given the much larger numbers of wells spread across some 10km.
Tawke and Peshkabir fields averaged combined production of 107,000 barrels of oil per day in 2022, representing a quarter of Kurdistan’s total exports.
Oil production had previously diverted to storage tanks.
Production from Genel’s other fields Taq Taq (44% working interest, joint operator) continues to flow into storage, with capacity for approximately three weeks,
There is also storage capacity at Sarta (30% working interest, operator) for several days.
Turkey’ requested the[pipeline be shut following an arbitration ruling by the International Chamber of Commerce in Paris, which determined that Turkey was violating the terms of a 1973 bilateral agreement by allowing the Kurdistan Regional Government (KRG) to use it to export crude.
In a statement earlier this week, Genel said it believed the shut-in will be temporary.