Two newly acquired natural gas fields in northern Iraqhave the potential to export gas to Turkey for two decades, said President of Genel Energy, an Anglo-Turkish energy company.
Genel Energy announced on Thursday with a statement on its website that it has agreed key terms with the Austrian energy company OMV to acquire its 36 percent operated stake in the Bina Bawi gas field in northern Iraq for $150 million.
The company also reached an agreement with the Ministry of Natural Resources of the Kurdistan Regional Government for the development of the Miran and Bina Bawi gas fields in the region, according to the statement.
"It is possible to export 20 billion cubic meters of natural gas to Turkey from the Miran and Bina Bawi fields for the course of 15 to 20 years," said Mehmet Sepil, President of Genel Energy, in a press release.
Genel Energy estimates proved reserves in the two fields of 8.4 trillion cubic feet (238 billion cubic meters), said Sepil in the release.
The first natural gas production for exports is expected to be in the first half of 2018, while the Kurdish Regional Government can expect gas for domestic consumption beginning in 2016 when the first oil production is expected to start, according to the statement.
"The facilities that the Kurdish Regional Government will build for the production and processing of natural gas constitute a serious opportunity for Turkish investors. It is also possible to deliver some of the 20 billion cubic meters of gas to Europe through Turkey," said Sepil in the release.
"For the Kurdish Regional Government, it unlocks the Miran and Bina Bawi gas resources and will enable it to satisfy domestic gas demand and its obligations under the Kurdish regional government-Turkey Gas Sales Agreement," Tony Hayward, chief executive of Genel Energy said in the statement.
- Crude oil exports to Turkey
Sepil also stated in the release that crude oil exports to Turkey from northern Iraqi oil fields will increase for this quarter and the next.
"Crude oil exports from northern Iraq to Turkey exceeded 300,000 barrels per day at the beginning of November, and will reach 400,000 barrels by the end of the year, and half a million barrels in the first quarter of 2015," he added.
"Genel Energy produces a total of 250,000 barrels of crude oil at Taq Taq and Tawke fields. This will increase to 350,000 barrels at the end of the first quarter of 2015," Sepil said in the release.
Ceyhan region in southern Turkey receives crude oil via pipeline from northern Iraq, as disputes between the Kurdish Regional Government in Erbil and the Iraqi federal government in Baghdad continued for almost two years about exporting the northern Iraqi oil.
On Thursday, the two governments agreed to resolve all outstanding issues between them, including the crucial issue of oil exports.
