Genel Energy  today reported unaudited results for the period ended 30 June 2025

Paul Weir, Chief Executive of Genel, said:
“The Tawke PSC has delivered robust production into consistent domestic market demand in the first half of 2025. Taken together with the cost reductions undertaken in 2024, the core business has generated underlying free cash flow.

Following the successful refinancing of our bond debt in April, our significant cash holding has now increased to $225 million. This strong balance sheet provides both optionality and the funding necessary for the acquisition of new production assets and geographical diversification, which remains a strategic priority for the business.

We are excited to have started work on Block 54 in Oman, and plan to begin testing of the discovered hydrocarbon pay zones around the start of next year, with results expected towards the end of the first quarter of 2026. These results will then determine the best approach for assessing the further potential of the licence for value realisation over the next 3 years.

Over a two-day period in July, the oil operations of a number of international oil companies in the Kurdistan Region of Iraq suffered drone attacks, with Tawke being one of the licences impacted. We are pleased to report that no people were hurt. Recent events in the Middle East had already resulted in a heightened state of security alert in Kurdistan and site manning was minimised. The operator is assessing both the impact and the appropriate forward production plan, with work ongoing to assess damage, minimize presence of staff on location, enhance safety protocols, and carry out repairs necessary for a full restart. We expect the impact of the damage and the deferred production on our cash position to be mitigated by continued focus on control of spend and insurance cover held for incidents such as these. We continue to guide no significant change in net cash at the end of the year.

We continue to work with peers and governments towards the resumption of Kurdistan oil exports, and are encouraged by the increased level of engagement between interested parties in recent weeks. We note that detailed discussions are taking place in relation to several key issues which could pave the way for an agreement that is acceptable to all parties.”

Summary

• Tawke generated predictable production with consistent domestic sales demand, resulting in working interest production of 19,600 bopd in H1 2025 (H1 2024: 19,510 bopd)
• Domestic sales price averaged $33/bbl for the period (H1 2024: $34/bbl), with all cash due for domestic sales received before the end of the period
• After the end of the period, there were drone attacks on a number of Kurdistan oil operations, including Tawke where production was temporarily stopped as a result of damage caused. The operator is assessing the damage and is working on an appropriate plan to increase production.
• Net cash of $134 million (31 December 2024: $131 million)
• Significant cash balance of $225 million (31 December 2024: $196 million)
• Bond debt of $92 million due in 2030 (31 December 2024: $66 million)
• Exits from the Sarta, Qara Dagh and Taq Taq licences have been approved by the KRG with minimal residual liability exposure. We have also exited the Lagzira licence in Morocco.
• Both receivables and payables balances with the KRG have reduced as a result of the exit from Sarta, Qara Dagh and Taq Taq, with the net balance of receivable of around $50 million

A socially responsible contributor to the global energy mix: 

• Portfolio carbon intensity under 14 kgCO2e/bbl, below the industry average target
• The Genel20 Scholarship programme has entered its third year, where Genel is providing university tuition funding for undergraduates from the Kurdistan Region of Iraq 

Outlook

• Following the impact of the drone attack on Tawke production, the operator is developing a plan to expedite the resumption of optimal production in a safe and efficient way, with work ongoing to determine and test the best plan for production ramp up
• We expect the impact on cash of damage caused and lost production to be mitigated by judicious cost control and insurance cover
• On Block 54 in Oman, following the Royal Decree granted in May, there will be some direct capital investment this year as we work towards the first phase, testing previously discovered hydrocarbon pay zones
• We reiterate our guidance of net cash at year-end expected to be about the same as the start of the year.
• On access to exports, talks between the Kurdistan Regional Government and Federal Government of Iraq and Ministry of Oil regarding the Iraq-Türkiye Pipeline are ongoing, with the timing of the resumption of exports on acceptable terms uncertain

KeyFacts Energy: Genel Energy Iraq country profile