Free cash flow of the Iraqi Kurdish Regional Government-focused oil company Genel Energy is expected to increase to over $100 million based on an average oil price as low as $45 a barrel, the company's CEO Murat Ozgul said on Tuesday.
Genel Energy said in a written statement that its cash flow was $164 million in 2018 when oil prices were around the $80-$85 per barrel mark.
The company added its 2018 net production from the Tawke and Taq Taq fields in northern Iraq was around 33,690 barrels per day, while the fourth quarter of 2018 averaged 36,920 barrels per day.
"Combined net production from the Tawke and Taq Taq fields during 2019 is expected to be close to last quarter of 2018 levels," the company said.
"2018 was a very positive year for Genel, which saw us generate material free cash flow and further transform the balance sheet. An expected year-on-year increase in production means we are set to continue this performance in 2019, with low-cost assets forecast to generate over $100 million in free cash flow even if the oil price averages $45 per barrel," Ozgul noted.
By Murat Temizer