Genel to spend $2.5bn on Iraq gas field development

15 October 2012

Final investment decision for Miran field development in mid-2013

UK-Turkish joint venture, Genel Energy plans to invest an estimated $2.5bn in the full field development of the Miran gas field in the semi-autonomous Kurdistan Region of Iraq.

Genel expects to complete the project’s front-end engineering and design (feed) by the middle of 2013, which will be followed by a final investment decision, according to a presentation by the firm’s senior executives in London on 10 October.

Genel will take a phased approach to the development of the field. The planned gas plant will use four standardized gas processing trains installed over time, producing up to 200 million cubic feet a day (cf/d).

Development costs are estimated at $4 per barrel of oil equivalent (boe).

The key issue for the development will be its access to export markets, with a focus on the large and growing Turkish market. Turkey currently receives 58 per cent of its gas imports from Russia, followed by 19 per cent from Iran and 9 per cent from Azerbaijan. Spot liquefied natural gas (LNG) imports are used to fill any deficit from piped gas imports.

If it proceeds with the scheme, the first sales gas from the Miran field could be delivered at the end of 2015. Genel is in talks with the Kurdistan Regional Government (KRG) and Turkish government over the construction of gas export infrastructure.

In August, Genel acquired a 26 per cent stake in the Miran field production sharing agreement from the US’ Heritage Oil, taking its total stake to 51 per cent. UK-based RPS Energy Consultants estimates the Miran field contains as much as 10.5 trillion cubic feet of gas.

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