Genel Energy PLC (LSE:GENL, OTC:GEGYY) told investors it has been informed by the Kurdistan Pipeline company that the Iraq-Turkey pipeline has been shut-in, at the request of Turkey.
The company, in a stock market statement, said that public statements made by both the Federal Iraq Ministry of Oil and the Kurdistan Regional Government (KRG) lead Genel to believe the shut-in will be temporary.
It noted that the shut-in follows the International Chamber of Commerce in Paris ruling in favour of Iraq in a long-running arbitration case against Turkey concerning the Iraqi-Turkish pipeline agreement signed in 1973.
Genel continues to produce from its fields, into storage facilities.
The company also noted, in its statement, references to the draft three-year federal budget approved by the Iraqi Cabinet earlier this month, to be submitted to the Iraqi Parliament for final approval, which includes a mechanism to ensure ongoing exports of 400,000 bopd of Kurdistan production in return for federal budget transfers.
It said that the company will further update the market as required.