ڕاپۆرت
Following the airstrikes by the United States and Israel on Iran, which began on February 28, 2026, production and drilling operations at the Tawke license were temporarily suspended.
بڵاوکراوەتەوە لە : 25 ئازار 2026
قەبارەی دەقەکان
قەبارەی دەقەکان
Company Results for 2025
🔻 Genel Energy’s operational results in the Kurdistan Region for 2025:
🔹 Withdrawal from the Sarta, Qara Dagh, and Taq Taq licenses without any remaining financial or legal obligations.
🔹 The Tawke field delivered forecasted production with sustained demand in the domestic market, resulting in an average working interest production of 17,520 barrels per day (2024: 19,650 barrels per day), with all production sold domestically.
🔹 The average domestic sales price for the year was $32 per barrel (2024: $35 per barrel), and all domestic sales revenues were received before year-end.
🔹 Following the U.S. and Israeli airstrikes on Iran starting February 28, 2026, production and drilling activities at the Tawke license were temporarily suspended.
🔹 The company is closely monitoring developments to assess when operations can safely resume.
Introduction
On March 18, 2026, Genel Energy announced its audited financial results for the year ending December 31, 2025.
Paul Weir, CEO of Genel Energy, stated:
“We have built a more resilient business with strong growth potential and are now well-positioned to deliver value to our shareholders. We are creating a business capable of generating robust, diversified, and predictable cash flows, supporting the resumption of shareholder distributions.”
In 2025, the company achieved solid progress across several areas:
Continued generation of free cash flow from production, reaching tens of millions of dollars
Positive free cash flow reported, strengthening the overall cash position
Significant progress in business restructuring
Successful exit from three non-core Kurdistan licenses and two African licenses without new costs or liabilities
Refinancing of debt, reducing funding risks for future strategic activities
Since the escalation of regional tensions, production at the Tawke field has been temporarily suspended. Preparations are in place to restart operations quickly once conditions stabilize.
The company maintains its 2026 guidance as previously announced and continues to focus on securing new investments, diversifying revenue sources, and potentially participating in export operations, while maintaining a balance between risk and return.
Summary of Financial Results
Production at Tawke temporarily halted due to regional instability
Average production: 17,520 barrels/day (down from 19,650 in 2024)
Average domestic price: $32 per barrel
Temporary production halt in July due to drone attacks on oil fields (including Tawke), with recovery to around 80,000 barrels/day by November
Production netback: $10 million (2024: $5 million)
Free cash flow: $4 million (2024: $20 million)
Year-end net cash: $134 million (2024: $131 million)
Cash balance: $224 million (2024: $196 million)
Bond debt: $92 million, maturing in 2030
In September, agreements were signed between the Iraqi Federal Government, Kurdistan Regional Government, and international oil companies to resume Kurdistan oil exports via the Iraq-Turkey pipeline. Genel chose not to participate at that time and continues reviewing export mechanisms.
Balances with the Kurdistan Regional Government
$88 million remains receivable from the KRG (excluding interest), partially offset by $40 million in liabilities
Additional $26 million owed to a Genel subsidiary related to arbitration legal costs, with hearings scheduled in London
Withdrawals and Liabilities
Exit from Sarta, Qara Dagh, and Taq Taq completed with no obligations
Also exited Lagzira (Morocco) and Odewayne (Somaliland) licenses without liabilities
Environmental and Social Commitments
Carbon intensity: below 14.4 kg CO₂e per barrel, lower than industry average
Maintained CDP rating of B for the fourth consecutive year
The Genel20 scholarship program continues into its fourth year, supporting university students in the Kurdistan Region
Outlook
The company expects:
Stable domestic sales from Tawke
Production improvements from new drilling in 2026
Production netback to fully cover operating costs and interest payments
Planned investments:
Up to $20 million in non-producing assets
Strategic priorities:
Acquiring new assets to diversify reserves and revenue
Restarting Tawke oil exports to access international pricing
Recovering outstanding payments from the KRG
Advancing Block 54 operations in Oman
Progressing toward drilling the Toosan-1 well in Somaliland
