Anglo-Turkish oil company Genel Energy says it expects production at its Kurdish oil fields to be at the "lower end" of the previously communicated daily average of 53,000 to 60,000 barrels per day for 2016.

However, the firm's chief executive Murat Ozgul said he was "optimistic" that the volume of oil exports from the region would grow in the long run following reforms from the Kurdistan Regional Government (KRG).

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Net production averaged 53,100 barrels per day in the third quarter, an 8% decrease on the previous three months.

The majority of the oil extracted by Genel in Kurdish Iraq is transported through a pipeline to the city of Ceyhan in southern Turkey and then exported globally.

"Genel has received $163m (£134m) in cash proceeds during 2016, underpinning the drilling of successful production wells across Taq Taq and Tawke," Ozgul said.

"The KRG has made significant progress in restructuring the region's economy. With export volumes at Ceyhan having increased following a new deal with the federal government, and the recent recovery in the oil price, this bodes well for the region's cash flows.

"Despite the recent delay in payments [from the KRG], we remain optimistic that they will continue, facilitating further investment across our KRI (Kurdistan Region of Iraq) assets."

Genel's revenue for the calendar year is expected to be on the lower end of its previous guidance range of $200m to $230m.

Oil