OREANDA-NEWS. London-listed Genel Energy's working interest production rose by 41pc in the first half of this year compared with a year earlier. The firm has replaced its chief executive Tony Haywood with Murat Ozgul.

Output was 88,800 b/d in January-June, with production in May and June averaging 95,600 b/d. The company reiterated its 2015 production target of 90,000–100,000 b/d.

The Taq Taq field in Iraq's semi-autonomous Kurdish region produced 128,900 b/d, of which 81,100 b/d was exported by pipeline. Around 31,500 b/d was used as feedstock at the Bazian refinery while the remaining 16,300 b/d was sold into the domestic market. Processing capacity is 150,000 b/d, although this will increase by 90,000 b/d on completion of a second processing facility, scheduled for the end of this year.

The Tawke field produced 128,200 b/d, with 104,200 b/d exported by pipeline and the remainder sold domestically. Tawke capacity doubled to 200,000 b/d in the first half of this year and record output of 180,000 b/d was achieved in May.

In the second half of this year, Genel aims to balance the amount of crude sold domestically, for which it receives short-term cash benefits, with the amount sold for export by pipeline to Turkey. Genel previously said cash flow was a key focus for 2015. It has been achieving this in part by selling crude on the domestic market under a temporary deal implemented by the Kurdistan Regional Government through which companies receive 50pc of domestic sales proceeds.

Genel received $45/bl for its Taq Taq crude that was exported by pipeline and $44/bl for crude sold domestically and to the Bazian refinery. Tawke crude that was exported by pipeline was sold at $40/bl and domestic sales were at $36-38/bl. Genel breaks even "at less than $20/bl" all in, Hayward said earlier this year.

Hayward has been appointed chairman of the firm, effective yesterday. He replaces Rodney Chase and will oversee company strategy and the running of the board. The new chief executive is former Genel president for Turkey and the Kurdistan region of Iraq, Murat Ozgul.

Genel has reduced its capital expenditure guidance to $150mn-200mn from $200mn-250mn as a result of it exiting some exploration commitments and "capital discipline" on its operations.