TIDMENOG
RNS Number : 2270C
Energean PLC
17 June 2021
Energean plc
("Energean" or the "Company")
2020 Report on Payments to Governments
London, 17 June 2021 . Energean plc (LSE: ENOG, TASE: ,) is
pleased to present its 2020 Report on Payments to Governments.
Basis for Preparation
This Report provides a consolidated overview of the payments to
governments made by Energean plc and its subsidiary undertakings (
"Energean") for the full year 2020 as required under the Report on
Payments to Governments Regulations 2014 (2014/3209), as amended in
December 2015 ( 2015/1928) , (the "Regulations") and DTR 4.3A of
the Financial Conduct Authority's Disclosure and Transparency Rules
.
This Report is available for download from www.energean.com.
Reporting entities
This Report includes payments to governments made by Energean.
Edison E&P is included on a pro forma basis, i.e. as if
Energean had owned the acquired companies for the duration of the
year[1].
Activities
Payments made to governments that relate to Energean's
activities involving the exploration, development, and production
of oil and gas reserves ("Extractive Activities") are included in
this disclosure. Payments made to governments that relate to
activities other than Extractive Activities are not included in
this report as they are not within the scope of the
Regulations.
Government
Under the Regulations, a government is defined as any national,
regional or local authority of a country and includes a department,
agency or undertaking that is a subsidiary undertaking controlled
by such an authority. All of the payments disclosed in this
disclosure have been made to national governments, either directly
or through a ministry or department of the national government,
with the exception of Greek payments in respect of production
royalties and licence fees, which are paid to the Hellenic
Hydrocarbon Resources Management SA.
Project
Payments are reported at project level with the exception that
payments that are not attributable to a specific project are
reported at the entity level. A "Project" is defined as operational
activities which are governed by a single contract, licence, lease,
concession or similar legal agreement, and form the basis for
payment liabilities with a government. If such agreements are
substantially interconnected, those agreements are to be treated as
a single project.
"Substantially interconnected" means forming a set of
operationally and geographically integrated contracts, licences,
leases or concessions or related agreements with substantially
similar terms that are signed with a government giving rise to
payment liabilities. Such agreements can be governed by a single
contract, joint venture, production sharing agreement, or other
overarching legal agreement. Indicators of integration include, but
are not limited to, geographic proximity, the use of shared
infrastructure and common operational management.
Payments
The information is reported under the following payment
types.
Production entitlements
Under production-sharing agreements ("PSAs"), production is
shared between the host government and the other parties to the
PSA. The host government typically receives its share or
entitlement in kind rather than being paid in cash.
Taxes
Taxes are paid by Energean on its income, profits or production
and are reported net of refunds. Consumption taxes, personal income
taxes, sales taxes, property and environmental taxes are
excluded.
Royalties
Royalties are payments for the rights to extract oil and gas
resources, typically at a set percentage of revenue less any
allowable deductions.
Dividends
Dividends, in this context, are dividend payments other than
those paid to a government as an ordinary shareholder of an entity,
unless paid in lieu of production entitlements or royalties. For
the year ended December 31, 2020, there were no reportable dividend
payments to a government.
Bonuses
Bonuses are usually paid upon signature of an agreement or a
contract, declaration of a commercial discovery, commencement of
production or achievement of a specified milestone.
Fees
Fees and other sums are paid as consideration for the
acquisition of a licence that enables access to an area for the
purposes of performing Extractive Activities. Administrative
government fees that are not specifically related to Extractive
Activities, or to access to extractive resources, are excluded, as
are payments made in return for services provided by a
government.
Infrastructure improvements
Infrastructure improvements payments relate to the construction
of infrastructure (road, bridge or rail) that are not substantially
dedicated for the use of extractive activities. Payments that are
of a social investment in nature, for example building of a school
or hospital, are also excluded. For the year ended December 31,
2020, there were no reportable payments for infrastructure
improvements.
Cash basis
Payments are reported on a cash basis, meaning that they are
reported in the period in which they are paid, as opposed to being
reported on an accruals basis (which would mean that they were
reported in the period for which the liabilities arise).
Materiality Level
For each payment type, total payments below GBP86,000 to a
government are excluded from this report.
Exchange Rate
All payments have been reported in US dollars. Payments made in
currencies other than US dollars are typically translated at the
average exchange rate of the year under consideration.
PAYMENTS OVERVIEW
The table below shows the relevant payments to governments made
by Energean in the year ended 31 December 2020 shown by country and
payment type.
Of the seven payment types that the UK regulations require
disclosure of, Energean did not make any payments in respect of
production entitlements, dividends and or infrastructure
improvements, therefore, those categories are not shown in the
tables.
Country Income Royalties Bonuses Fees Total
taxes
$m $m $m $m $m
---------------- ---------- -------- ----- ------
Egypt 58.19[2] - 2.54 0.34 61.07
Greece - 0.70 - 0.26 0.96
Israel - - - 0.29 0.29
Italy - 15.47 - 5.10 20.57
Montenegro - - - 0.12 0.12
United Kingdom - - - 1.14 1.14
---------- -------- ----- ------
TOTAL 58.19 16.17 2.54 7.25 84.15
================ ========= ========== ======== ===== ======
PAYMENTS BY PROJECT
Payments by Project Income Royalties Bonuses Fees Total
taxes
$m $m $m $m $m
------- ---------- -------- ------ -------
Greece - Prinos asset - 0.70 - - 0.70
------- ---------- -------- ------ -------
Greece - Exploration - - - 0.26 0.26
------- ---------- -------- ------ -------
GREEK GOVERNMENT REPORT - 0.70 - - 0.96
------- ---------- -------- ------ -------
Egypt - Abu Qir 58.19 - 0.15 0.34 58.68
------- ---------- -------- ------ -------
Egypt - North El Amriya
/ North Idku - - 0.20 - 0.20
------- ---------- -------- ------ -------
Egypt - Exploration - - 2.19 - 2.19
------- ---------- -------- ------ -------
EGYPTIAN GOVERNMENT
REPORT 58.19 - 2.54 0.34 61.07
------- ---------- -------- ------ -------
Italy - A.C 13.AS - 0.31 - 0.16 0.47
------- ---------- -------- ------ -------
Italy - A.C 14.AS - - - 0.18 0.18
------- ---------- -------- ------ -------
Italy - A.C 16.AG - - - 0.39 0.39
------- ---------- -------- ------ -------
Italy - A.C Other 0.21 0.21
------- ---------- -------- ------ -------
Italy - B.C 10.AS - 0.47 - 0.26 0.73
------- ---------- -------- ------ -------
Italy - B.C 13.AS - 5.61 - 0.47 6.08
------- ---------- -------- ------ -------
Italy - B.C 14.AS - 1.82 - 0.27 2.09
------- ---------- -------- ------ -------
Italy - B.C 9.AS - - - 0.21 0.21
------- ---------- -------- ------ -------
Italy - B.C1.LF - - - 0.12 0.12
------- ---------- -------- ------ -------
Italy - B.C7.LF - 1.17 - 0.28 1.45
------- ---------- -------- ------ -------
Italy - B.C8.LF - 1.95 - 0.53 2.48
------- ---------- -------- ------ -------
Italy - B.C Other 0.34 0.34
------- ---------- -------- ------ -------
Italy - C.C6.EO - 1.74 - 0.35 2.09
------- ---------- -------- ------ -------
Italy - Candela - - - 0.32 0.32
------- ---------- -------- ------ -------
Italy - Colle Di Lauro - 0.33 - 0.05 0.38
------- ---------- -------- ------ -------
Italy - Comiso II - 0.19 - 0.01 0.20
------- ---------- -------- ------ -------
Italy - Garaguso - 0.57 - 0.10 0.67
------- ---------- -------- ------ -------
Italy - Montignano - - - 0.12 0.12
------- ---------- -------- ------ -------
Italy - S.Anna (Tresauro) - 1.31 - 0.01 1.32
------- ---------- -------- ------ -------
Italy - Other - - - 0.72 0.72
------- ---------- -------- ------ -------
ITALIAN GOVERNMENT
REPORT - 15.47 - 5.10 20.57
------- ---------- -------- ------ -------
Israel - Karish/Tanin
leases - - - 0.14 0.14
------- ---------- -------- ------ -------
Israel - Exploration
assets - - - 0.15 0.15
------- ---------- -------- ------ -------
ISRAELI GOVERNMENT
REPORT - - - 0.29 0.29
------- ---------- -------- ------ -------
Montenegro - Exploration - - - 0.12 0.12
------- ---------- -------- ------ -------
MONTENEGRIN GOVERNMENT
REPORT - - - 0.12 0.12
------- ---------- -------- ------ -------
UK - Tors Licence - - - 0.73 0.73
------- ---------- -------- ------ -------
UK - Wenlock Licence - - - 0.20 0.20
------- ---------- -------- ------ -------
UK - Appraisal assets - - - 0.21 0.21
------- ---------- -------- ------ -------
UK GOVERNMENT REPORT - - - 1.14 1.14
------- ---------- -------- ------ -------
TOTAL 58.19 16.17 2.54 7.25 84.15
=========================== ======= ========== ======== ====== =======
Enquiries
Investors, Analysts and Media
Kate Sloan, Head of IR, ECM and Communications +44 (0) 7917 608
645
About Energean plc
Established in 2007, Energean is a London Premium Listed FTSE
250 and Tel Aviv 35 Listed E&P company with operations in nine
countries across the Mediterranean and UK North Sea. Since IPO,
Energean has grown to become the leading independent, gas-focused
E&P company in the Eastern Mediterranean, with a strong
production and development growth profile. The Company explores and
invests in new ideas, concepts and solutions to produce and develop
energy efficiently, at low cost and with a low carbon
footprint.
Energean's production comes mainly from the Abu Qir field in
Egypt and fields in Southern Europe. The company's flagship project
is the 3.5 Tcf Karish, Karish North and Tanin development, offshore
Israel, where it intends to use the newbuild fully-owned FPSO
Energean Power, which will be the only FPSO in the Eastern
Mediterranean, to produce first gas, commencing mid-2022. Energean
has signed contracts for 7.4 Bcm/yr of gas sales on plateau into
the Israeli domestic market, which have floor pricing, take-or-pay
and/or exclusivity provisions that largely insulate the project's
revenues against global commodity price fluctuations and underpin
Energean's goal of paying a meaningful and sustainable
dividend.
With a strong track record of growing reserves and resources,
Energean is focused on maximising production from its large-scale
gas-focused portfolio to deliver material free cash flow and
maximise total shareholder return in a sustainable way. ESG and
health and safety are paramount to Energean; it aims to run safe
and reliable operations, whilst targeting carbon-neutrality across
its operations by 2050. These aspirations were significantly
advanced with the completion of the Edison E&P acquisition in
December 2020, which is now being successfully integrated in
Energean's business.
www.energean.com
[1] The transaction closed on 17 December 2020; for accounting
purposes results are consolidated from this date. However, the
economic reference date of the transaction was 1 January 2019,
meaning that all results incurred subsequent to this date accrue to
Energean.
[2] Our Egyptian assets are operated under PSAs, which set out
the terms of the activities, including the applicable tax laws and
regulations. Under the Abu Qir PSA, Energean is entitled to the net
production from the asset, which forms the basis for the
calculation and reporting of its payments to the Egyptian
Government. Taxes include in-kind volumes due by Energean to the
Egyptian Tax Authorities under the PSAs, which provide that the tax
obligations of the company are settled by the Egyptian General
Petroleum Corporation (EGPC) out of its share of profit oil. The
monetary value of those payments is determined using the same
method as per production entitlements. The corporate income taxes
paid in 2020, were settled by EGPC on Energean's behalf out of
production entitlement (payment in kind), in accordance with the
terms of our PSAs. The terms of our PSAs provide that corporate
income taxes are paid in the year following that to which they
relate. Accordingly, our 2020 payment relates to our 2019 taxable
profits.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
PGREAXKXFLDFEEA
(END) Dow Jones Newswires
June 17, 2021 04:00 ET (08:00 GMT)
Energean (LSE:ENOG)
Historical Stock Chart
From Apr 2024 to May 2024
Energean (LSE:ENOG)
Historical Stock Chart
From May 2023 to May 2024