Genel Energy PLC: Update on Bina Bawi (804991)
30 April 2019 - 4:01PM
UK Regulatory
Dow Jones received a payment from EQS/DGAP to publish this press
release.
Genel Energy PLC (GENL)
Genel Energy PLC: Update on Bina Bawi
30-Apr-2019 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
30 April 2019
Genel Energy plc
Update on Bina Bawi
Genel Energy plc ('Genel' or 'the Company') provides the following update on
the Bina Bawi licence.
As previously announced, the deadline to meet the conditions precedent
relating to the Bina Bawi gas lifting agreement ('GLA') was extended until
30 April 2019, as discussions with the Kurdistan Regional Government ('KRG')
on the commercial framework relating to the development of the licence
continued.
Having reached agreement that the existing GLA does not reflect the
commercial realities of the proposed development, Genel and the KRG ('the
Parties') have jointly agreed to let the GLA lapse on 30 April 2019 and
focus on negotiating updated commercial terms based on a staged and
integrated oil and gas development. The Parties are progressing the
negotiation of a project scope based on a phased approach and ramp up of the
gas development, with an initial phase of c.250 MMscfd raw gas capacity, and
an accelerated development of the oil scope, where the KRG and Genel will
jointly fund the first phase gas development utilising the revenue from Bina
Bawi oil.
The Parties have agreed to focus on finalising the commercial arrangement
for this solution as soon as practical. The current production sharing
contract ('PSC') provides a further 12 month period from 30 April 2019
within which to agree a new GLA. Should no agreement be reached in twelve
months, the KRG has a right to terminate the PSC.
In line with our capital allocation strategy, the Company will only proceed
with significant investment in Bina Bawi once an agreement is reached on a
commercial framework that provides a clear route to monetisation.
The deadline for the Miran conditions precedent will be reached on 31 May
2019 and the Company similarly expects that the Miran GLA will lapse.
-ends-
For further information, please contact:
Genel Energy +44 20 7659 5100
Andrew Benbow, Head of Communications
Vigo Communications +44 20 7390 0230
Patrick d'Ancona
Notes to editors:
Genel Energy is an independent oil and gas exploration and production
company listed on the main market of the London Stock Exchange (LSE: GENL,
LEI: 549300IVCJDWC3LR8F94). The Company, with headquarters in London and
offices in Ankara and Erbil, is one of the largest London-listed independent
oil producers, and is the largest holder of reserves and resources in the
Kurdistan Region of Iraq. Genel has highly cash-generative oil production
from the Taq Taq and Tawke licences, with material growth potential from
other assets in the portfolio. Genel also continues to pursue further growth
opportunities. For further information, please refer to www.genelenergy.com
[1].
ISIN: JE00B55Q3P39
Category Code: MSCM
TIDM: GENL
LEI Code: 549300IVCJDWC3LR8F94
Sequence No.: 8425
EQS News ID: 804991
End of Announcement EQS News Service
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=3ec46b352f38452116096dbbab51b09e&application_id=804991&site_id=vwd_london&application_name=news
(END) Dow Jones Newswires
April 30, 2019 02:01 ET (06:01 GMT)
Genel Energy (LSE:GENL)
Historical Stock Chart
From Apr 2024 to May 2024
Genel Energy (LSE:GENL)
Historical Stock Chart
From May 2023 to May 2024