Genel Energy Reports Strong Q3 Recovery in Kurdistan Output and Progress in Oman Exploration
Genel Energy has released its Q3 and nine-month 2025 trading and operations update, highlighting a strong rebound in production from its Kurdistan assets and steady progress across its pre-production portfolio in Oman and Somaliland.
Kurdistan Operations – Tawke PSC (Genel 25% WI)
Production Rebound
- Gross output restored to ~80,000 bopd, matching levels before the drone-strike disruption earlier in the year.
- Domestic sales prices averaged $31/bbl in Q3 (YTD: $33/bbl, vs $35/bbl in FY2024).
- Working interest production: 16,920 bopd up to 30 September (FY2024: 19,650 bopd).
Genel credited effective well interventions and workovers for sustaining output, and confirmed that plans to resume drilling new production wells are underway.
The company also expects to receive an insurance payment of about $3 million by year-end for production losses linked to the drone strike.
CEO Paul Weir’s Commentary
CEO Paul Weir emphasized:
- Satisfaction with the rapid restoration of Tawke and Peshkabir production.
- Optimism about expanding the upcoming activity program with the operator.
- Confidence in cash generation despite low domestic pricing.
Weir also highlighted encouraging signs of Kurdistan export operations resuming through the Ceyhan pipeline, expressing hope that new payment mechanisms will ensure international prices and full entitlements for producers.
Pre-Production & Exploration Assets
Oman – Block 54 (Genel 40% WI)
The company has initiated Phase 1 of its 3-year work plan, including:
- Testing of the Batha West-1 (BW-1) discovery well.
- Acquisition of 300 km² of 3D seismic.
- Drilling of two vertical exploration wells.
Key operational timelines:
- BW-1 workover completed by end-2025.
- Well testing results expected around end-Q1 2026.
- Results will guide seismic placement and future well locations.
Somaliland – SL10B13 (Genel 51% WI)
- Work continues toward creating conditions suitable to drill the Toosan-1 exploration well, described as “highly prospective.”
Financial Position & Outlook
- Net cash at 30 September 2025: $135 million
- Total cash: $226 million
Genel expects year-end net cash to be roughly unchanged from the start of 2025.
The company reiterated its goal of building:
- A strong balance sheet
- Resilient and diversified cash flows
- A platform that supports a sustained dividend program
Near-Term Strategic Priorities
- Restart exports from Tawke and Peshkabir
- Maximize production and reserves from both fields
- Advance Oman Block 54 appraisal
- Secure a KRG repayment plan for overdue receivables
- Acquire new producing assets
AGM Update
Following significant (20%+) opposition votes on several AGM resolutions in May 2025, Genel consulted major shareholders.
- After discussions, no specific actions have been identified by shareholders as necessary at this time.
