Genel Energy reports first oil at Sarta field in Iraq

Genel Energy has announced that it had reached the first oil at the Sarta field in the Kurdistan Region of Iraq.

Oil at the field now started flowing from the Sarta-3 well into the early production facility.

Genel owns 30% working interest in the field, while US major Chevron holds a 50% stake in the licence. The remaining 20% stake is owned by the Kurdistan Regional Government.

A workover on the Sarta-2 is currently underway and is expected to be completed in December. Sarta-2 would reach stable production in the first quarter of next year.

Genel noted that the 2021 drilling campaign preparations are underway and the programme aims to target a material portion of the 250 million barrels of contingent resources.

Genel chief executive Bill Higgs said: “First oil at Sarta is an important strategic and operational milestone for Genel, not least given the challenges presented by Covid-19 in 2020. In that context, progressing Sarta to first oil has been a tremendous achievement and a testament to the alignment and co-operation of the field partners and contractors.

“Already the only multi-licence producer in the Kurdistan Region of Iraq, the addition of Sarta further diversifies our production and cash flows.

“We look forward to the results of our well programme in 2021, which is designed to further appraise the potential of the field. This will enable us to work with Chevron to optimise the value of the asset in the years ahead.”

In January last year, Genel Energy agreed to acquire stakes in the Sarta and Qara Dagh blocks from Chevron.