REG-Genel Energy PLC Genel Energy PLC: Receipt of payments for KRI oil sales

Genel EnergyAnnouncement

06/03/2023 07:15

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   Genel Energy PLC (GENL)
   Genel Energy PLC: Receipt of payments for KRI oil sales

   06-March-2023 / 07:00 GMT/BST

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   6 March 2023

                                        

                                Genel Energy plc

                                        

                     Receipt of payments for KRI oil sales

    

   Genel Energy plc  ('Genel' or  ‘the Company’) announces  that payment  has
   been received from the Kurdistan  Regional Government (‘KRG’) relating  to
   Tawke PSC sales during September 2022.

    

   Genel’s share  of  payments for  September  sales  is expected  to  be  as
   follows:

    

   (all figures $ million) Expected payment Under previous mechanism
   Tawke (received)                    16.1                    17.7 
   Taq Taq                              2.4                     2.4 
   Sarta                                1.4                     1.7 
   Receivable recovery                 13.1                     13.1
                     Total             33.0                    34.9 

    

   Sales for  September have  been priced  by  the KRG  under a  new  pricing
   formula based  on  the realised  sales  price for  Kurdistan  blend  crude
   (‘KBT’) during the delivery month, rather  than on dated Brent, which  was
   the basis in the past. KBT  is the aggregation of oil transported  through
   the Iraq-Turkey Pipeline and sold at Ceyhan.

    

   The change in pricing  formula results in an  adverse impact on  September
   realised price per barrel  at field level of  $11/bbl, with the impact  on
   our working  interest  per barrel  being  $2/bbl. This  has  impacted  our
   proceeds by  $1.9 million  for sales  made in  September. Should  the  new
   pricing mechanism have been in place across 2022, the impact of the change
   on realised monthly  price per  barrel at  field level  would have  ranged
   between $6/bbl and $13/bbl,  with the impact  on working interest  between
   $1/bbl and $3/bbl.

    

   The table below summarises the KBT blend  price stated by the KRG for  the
   months from September 2022  to January 2023, together  with the impact  on
   our working  interest  $/bbl  revenue. The  netback  figure  continues  to
   include adjustments for transportation costs  and crude quality, with  the
   quality adjustment now reduced as the  crude quality of KBT is lower  than
   Brent.

    

   (all figures $/bbl)                   Sep 2022 Oct 2022 Nov 2022 Dec 2022 
   Dated Brent                                 90       93       92        81
   KBT blend                                   72       75       72        63
   Impact on field revenue realised
   price (adjusted for quality to KBT          11       12       13        10
   blend)   
   Impact on Genel revenue per working        2.2      2.5      2.7       2.2
   interest barrel

    

   Pending settlement of the above  receivable recovery payment, there is  no
   further payment to be  received under the KRG  payment mechanism for  past
   receivables.

    

                                     -ends-

    

   For further information, please contact:

    

   Genel Energy
                                         +44 20 7659 5100
   Andrew Benbow, Head of Communications
                                          
   Vigo Consulting
                                         +44 20 7390 0230
   Patrick d’Ancona 

    

   Notes to editors:

    

   Genel Energy is  a socially responsible  oil producer listed  on the  main
   market   of    the    London    Stock   Exchange    (LSE:    GENL,    LEI:
   549300IVCJDWC3LR8F94). The  Company is  one of  the largest  London-listed
   independent hydrocarbon producers, with an asset portfolio that  positions
   us well for a future of fewer and better natural resources projects. Genel
   has low-cost and low-carbon production from the Kurdistan Region of  Iraq,
   and a committed dividend programme that is material and sustainable. Genel
   continues to seek opportunities to  add new resilient and  cash-generative
   assets to its portfolio, with the goal of progressing its dividend in  the
   long-term. For further information, please refer to  1 www.genelenergy.com

    

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:          JE00B55Q3P39, NO0010894330
   Category Code: MSCM
   TIDM:          GENL
   LEI Code:      549300IVCJDWC3LR8F94
   Sequence No.:  227498
   EQS News ID:   1574889


    
   End of Announcement EQS News Service

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