Oil prices will range between $100 and $120 a barrel “for the time being,” said Tony Hayward, chief executive officer of Genel Energy Plc and ex-BP Plc CEO.
Political events may see a spike above $120 a barrel, Hayward told reporters in Istanbul while attending a Black Sea environmental conference where he spoke about his experience as BP CEO during the oil spill accident in the Gulf of Mexico.
Oil in New York reached $110.55 on March 1, the highest intraday level since May, amid speculation that European and U.S. sanctions aimed at halting Iran’s nuclear program would disrupt Middle East shipments.
“I don’t think prices will go beneath $100 because we see demand is growing in the world,” Hayward said. “I think oil prices will be range bound for the time being.”
It wasn’t immediately clear whether European Union sanctions on Iran form July 1 will work because “not everybody has signed up for the sanctions,” he said.
Genel Energy, formed when Vallares, the investment vehicle led by Hayward, and Ankara-based Genel Enerji merged in a $2.1 billion all-share reverse takeover in September, will increase production in two of its northern Iraqi fields to 200,000 barrels a day, he said.
“We will increase the production to 200,000 barrels a day in each of Taq Taq and Tawke fields in 18 months,” he said.
Taq Taq, in which Addax Petroleum Corp has 36 percent, is producing 90,000 barrels a day and Tawke between 20,000 barrels a day and 30,000 barrels a day now, he said.
Genel Energy has stakes in six oilfields in northern Iraq, which is controlled by the Kurdistan Regional Government, and is producing oil in the two fields. It says those interests amount to a potential 356 million barrels of proven reserves. Genel and Norway’s DNO International ASA are partners in the region’s Tawke and Dohuk fields.
BP did what it should have done after the Gulf of Mexico oil spill started in 2010, Hayward said, without elaborating.
The blowout and explosion on the Deepwater Horizon drilling rig killed 11 workers and caused the worst offshore oil spill in U.S. history. The accident prompted hundreds of lawsuits against London-based BP; Transocean Ltd., the Vernier, Switzerland-based owner and operator of the rig; and Halliburton Co., which provided cementing services.