(Alliance News) - 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 USD1.5 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 USD107 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.
By Tom Budszus, Alliance News slot editor
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Genel Energy (GENL)