Genel Energy celebrates ‘first oil’ at Sarta field

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Genel Energy PLC (LON:GENL) has declared ‘first oil’ at the Sarta field, where the company has a 30% stake alongside Chevron.

Production has begun at Sarta with first oil flowing from the Sarta-3 well into the Early Production Facility, Genel said. The Sarta-2 well is on track to be completed in December and will come onstream from January.

Genel said it continues to expect that the Sarta field will achieve stable production levels during the first quarter of 2021.

READ: Genel confirms production growth in three quarters

A fresh appraisal drilling campaign at Sarta is also being prepared and is slated to take place in 2021. This campaign aims to target a material portion of the field’s 250mln barrels of contingent resources, the Jurassic-age formations.

“First oil at Sarta is an important strategic and operational milestone for Genel, not least given the challenges presented by COVID-19 in 2020,” said Bill Higgs, Genel chief executive in a statement.

“In that context, progressing Sarta to first oil has been a tremendous achievement and a testament to the alignment and co-operation of the field partners and contractors.”

Higgs added: “Already the only multi-licence producer in the Kurdistan Region of Iraq, the addition of Sarta further diversifies our production and cash flows. We look forward to the results of our well programme in 2021, which is designed to further appraise the potential of the field. This will enable us to work with Chevron to optimise the value of the asset in the years ahead.”

Genel acquired its 30% interest in the Sarta Block from Chevron, which still holds 50%, back in January 2019. The Kurdistan Regional Government retains a 20% interest in the asset.

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