High quality oil in KRG holds ‘Turkish interest’

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Since Turkish firms have discovered high quality oil in northern Iraq, Turkey cannot remain indifferent to the oil and natural gas resources, says an executive of Genel Energy that has discovered oil in the Chia Surkh.

Turkey cannot remain indifferent to the oil and natural gas resources in northeastern Iraq, an executive of Genel Energy has said, as Genel Energy and Petoil have discovered quite high quality oil in the Chia Surkh site.

“We have got to know the region’s geological structure very well. The reserves are good. And there could be even more reserves far beyond those announced until now, both oil and natural gas,” Genel Energy’s Head of Government and Public Affairs Pars Kutay said. According to Kutay, these reserves are quite above the levels which Turkey needs. “We believe that for an energy hungry country which has limited energy resources, like Turkey, it does not seem possible to be indifferent to such huge sources just 150-200 km away from its borders” Kutay added.
The Chia Surkh site was discovered in 1902 but it was later closed because of the lack of technologies to drill deeper. The site came to be known as the first site to be drilled in the Mesopotamian region, even before the Kirkuk site. “We made our first drilling in Chia Surkh. We plan four more. During the first drilling, 12,000 barrels a day with quite high flowing pressure make us very happy as well as markets” Kutay said. From the first drillings, the two firms reached high quality and light oil. “It is of as high quality as olive oil,” Kutay added.

Genel Energy now operates in seven sites in the Kurdish Regional Government territory, including Chia Surkh, Dohuk, Ber Bahr, Miran, Bina Bawi, Taq Taq and Kewa Chirmila.

‘Consolidations’ to take place in northern Iraq

Adding that they planned to carry out four more drillings in Chia Surkh to develop the site, Kutay said they planned to start production by the first half of 2014. “According to the data from the first well, we believe the site has approximately 300 million barrels in reserves. We believe that the site has reserves very close to the Taq Taq reserves both in quality and quantity” Kutay said.

Kutay emphasized that Turkey should develop the required policies about how it could use the mentioned resources. “Big Oil is now in the region and now is the time to see what these big companies do. There are also small companies in the region. Big companies could acquire them,” Kutay said. According to Kutay, there could be a series of consolidations in the region over the next five years.

In response to a question about whether Genel Energy would be acquired or if it would acquire, Kutay said, “There is nothing about us. We have been the biggest in the region… Anything is possible. It is business in the end.”