Genel begins production from Sarta oil field in Iraq

Iraq-focused independent Genel Energy said production has started at the Sarta oil field in the semi-autonomous Kurdistan region of northern Iraq.

The first phase of the Sarta field involves tying two wells back to a 20,000 b/d early production facility. The first well — Sarta 3 — is now producing oil. The second — Sarta 2 — is due on stream in January. Genel has not disclosed current output but said a stable level of production will be reached in the first quarter of 2021.

"The addition of Sarta further diversifies our production and cash flows", Genel chief executive Bill Higgs said.

The firm acquired a 30pc stake in Sarta from Chevron, the field's operator, in January 2019, along with a 40pc interest in the Qara Dagh block. It had targeted first oil at Sarta in the third quarter of this year, but the start-up was delayed by Covid-19 related operational challenges including the closure of borders and the slow movement of people and equipment.

The pandemic has also caused delays to appraisal drilling at Qara Dagh, with Genel declaring force majeure in May. The firm lifted the force majeure just over three weeks ago, and plans to begin drilling the QD-2 well in the first quarter of 2021, almost a year later than initially expected.

By Beatrice O'Kelly