listed Genel Energy is targeting the Turkish market for future exports from its Miran gas field in Iraqi Kurdistan after gaining a key official approval that brings it a significant step closer to development.

The Anglo-Turkish player, led by chief executive Tony Hayward, is now set to enter the development period having secured approval from the Kurdistan Regional Government (KRG) of its declaration of commerciality for the discovery.

Genel, which has 100% control of the licence after its acquisition from Heritage Oil, is now working with the KRG on a plan to commercialise gas from the field with a view to signing an agreement for gas exports to Turkey by the end of this year as it moves towards project sanction.

Head of business development Charles Proctor said the company’s Kurdistan gas business “has the potential to supply a significant portion of Turkish demand growth”.

Kurdistan is though proceeding with construction of a new oil pipeline to Turkey bypassing the Iraqi transport network that is reportedly due to be completed by the end of this month, with Genel believed to be planning to send output from its Taq Taq field through the route.

The company has earlier angered the Iraqi authorities by trucking Taq Taq oil across the border to Turkey due to the halt of an export pipeline.

The Miran field is estimated to hold gross mean contingent resources of 3.5 trillion cubic feet of gas, as well as 95 million barrels of oil and condensate, in the Miran West structure.

There is also further upside potential in the Miran East and Miran Deep prospects, with an exploration well lined up at the latter next year, and Genel estimates the block could hold 8 Tcf of gross recoverable contingent and unrisked prospective resources.

The operator last month brought online an early production facility for the field’s oil with the first well producing at 2000 barrels per day.