Genel Energy PLC on Wednesday said its workforce has been cut by two thirds in the last year as it focused on developing a new income through domestic sales, nearly a year after the suspension of exports through the Iraq-Turkey pipeline.
The oil and gas exploration and production company formerly focused on exports to the Kurdistan region said it expects a net production of 12,410 barrels of oil per day for 2023, down 59% from 30,150 bopd in 2022.
This is the result of the Iraq-Turkey pipeline shutting in March 2023. Turkey had closed the pipeline after the Paris-based International Chamber of Commerce ordered Ankara to pay about $1.5 billion in damages to Baghdad for transporting oil from the Kurdistan region without Iraq’s approval.
Genel Chief Executive Officer Paul Weir said: ‘There is real potential in 2024 for significant improvement in cash generation and delivery of shareholder value from multiple catalysts – the resumption of exports and regular payments, clarity on the timing of the recovery of $107 million of receivables, delivery on our strategy to add new assets to diversify our production portfolio, and a successful arbitration result and subsequent collection.’
Genel will release its 2023 results on March 26.
Genel shares were flat at 71.20 pence each on Wednesday morning in London.
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