Genel Energy (LON: GENL) Begins Iraqi Exports Despite Warning

Brian Hicks

Written By Brian Hicks

Posted January 21, 2013

Genel Energy PLC (LON: GENL) hopes to increase the quantity of oil it has been shipping from the autonomous Kurdish region of Iraq, in what would amount to spurning Baghdad’s well-known opposition to Kurdish oil deals.

Recently, tensions have flared between Baghdad and the Kurds over Kurdish exports of Iraq’s vast oil reserves. The central government stated several weeks ago that it will pursue and prosecute oil companies that engage in deals with the Kurds.

But Genel began its oil exports from Kurdistan on January 7 and intends to raise the shipment quantity to 20,000 barrels per day soon.

Intriguingly, Tony Hayward, the former CEO of BP (LON: BP) infamous for his maladroit handling of the Deepwater spill, is leading Genel.

From the Huffington Post:

“We are today exporting oil to Turkey in accordance with the authority granted to us by the Kurdistan Regional Government and as the largest independent operator in Kurdistan, are well placed to take advantage of regional opportunities for a broader export market as the political situation continues to develop,” Hayward said.

Defying Baghdad, the Kurds have constructed several oil deals with international majors including Exxon Mobil Corp. (NYSE: XOM), Chevron Corp. (NYSE: CVX), and Total S.A. (NYSE: TOT) of France.

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