Genel Energy Reports Surge in Oil Production in Kurdistan Region Amid Ongoing Financial Disputes

Peregraf 

Genel Energy has announced a sharp increase in its oil production within Kurdistan region, reporting an average of 19,650 barrels per day in 2024, a 58% rise compared to 2023.

Despite the production boost, the company continues to face financial and contractual uncertainties. With the suspension of pipeline exports, Genel Energy has been selling its oil domestically at $35 per barrel, significantly lower than the $47 per barrel it received in early 2023 when exports were still flowing.

In its 2024 financial report, Genel Energy projected a total revenue of $74.7 million and an expenditure of $17.6 million, slightly down from its 2023 revenue of $78.4 million and expenditure of $18 million.

The company also disclosed that the Kurdistan Regional Government (KRG) owes it $107 million, while Genel Energy itself has outstanding debts of $50 million to the KRG.

Genel Energy reiterated its commitment to resuming oil exports through pipelines, urging both Iraq and the KRG to honor and safeguard existing contracts to ensure financial stability and operational continuity. 

Financial Disputes Continue to Delay Exports

While discussions continue, unresolved financial disagreements remain a major hurdle. A March 6 meeting in Baghdad aimed at resolving these disputes ended without an agreement. The key issue is approximately $1 billion in unpaid dues that international oil companies claim from the Iraqi government, which has so far refused to cover the costs.

Meanwhile, U.S. National Security Advisor Mike Waltz has urged Iraq to settle outstanding payments to American energy firms operating in the Kurdistan Region, in line with broader U.S. efforts to strengthen economic ties with Iraq and reduce its reliance on Iran.

Turkey remains a crucial player in the negotiations, as its Ceyhan port has historically been the primary export route for Kurdish oil. The ongoing energy dispute dates back to March 25, 2023, when oil shipments were halted following a ruling by the Paris Arbitration Court in favor of Iraq, which challenged the legality of independent KRG oil exports through Turkey. The suspension has significantly impacted the KRG’s economy, which heavily relies on oil revenues.

While recent talks signal progress toward a resolution, long-term stability in the Kurdistan Region’s energy sector remains uncertain as financial and political challenges persist.