REG-Genel Energy PLC Genel Energy PLC: Report on payments to governments

Genel EnergyAnnouncement

04/04/2024 09:15

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   Genel Energy PLC (GENL)
   Genel Energy PLC: Report on payments to governments

   04-Apr-2024 / 09:00 GMT/BST

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   4 April 2024

     

                                Genel Energy plc

                                        

              Report on payments to governments for the year 2023

   Introduction and basis for preparation

   This report sets out details of the payments made to governments by  Genel
   Energy plc and its subsidiary undertakings (‘Genel’) for the year ended 31
   December 2023 as required under  the Disclosure and Transparency Rules  of
   the UK Financial Conduct Authority (the ‘DTRs’) and in accordance with our
   interpretation of  the Industry  Guidance issued  for the  UK’s Report  on
   Payments to  Governments Regulations  2014, as  amended in  December  2015
   (‘the Regulations’). The DTRs require companies in the UK and operating in
   the extractives sector to publically disclose payments made to governments
   in  the   countries  where   they  undertake   exploration,   prospection,
   development and  extraction  of oil  and  natural gas  deposits  or  other
   materials.

   This      report       is       available       to       download       at
   www.genelenergy.com/investor-relations/results-reports-presentations.

    

   Governments

   All of the payments made in  relation to licences in the Kurdistan  Region
   of Iraq (‘KRI’) have been made to the Ministry of Natural Resources of the
   Kurdistan Regional Government (‘KRG’).

    

   Production entitlements

   Production entitlements  are the  host  government’s share  of  production
   during the reporting  period from projects  operated by Genel.  Production
   entitlements from projects that are not operated by Genel are not  covered
   by this report. The figures reported have been produced on an  entitlement
   basis rather than on  a liftings basis.  Production entitlements are  paid
   in-kind and  the monetary  value disclosed  is derived  from  management’s
   calculation of revenue from the field.

   Royalties

   Royalties represent royalties paid in-kind to governments during the  year
   for the extraction of oil. The terms of the Royalties are described within
   our Production Sharing  Contracts and  can vary from  project to  project.
   Royalties have been calculated on the same barrels of oil equivalent basis
   as production entitlements.

   Materiality threshold

   Total payments below £86,000 made to a government are excluded from this
   report as permitted under the Regulations.

    

   payments to governments – 2023

    

   Country/Licence                       KRI Total (1) Taq Taq (2)  Sarta (3)
    
   Production entitlement (bbls)            303,607.97  162,762.40 140,845.57
   Royalties in kind (bbls)                  71,094.70   36,775.60  34,319.10
   Total (bbls)                             374,702.67  199,538.00 175,164.67
    
   Value of production entitlements ($           17.83       10.60       7.23
   million)
   Value of royalties ($ million)                 4.15        2.39       1.76
   Capacity building payments ($                  0.29        0.21       0.08
   million) (3)
   Total ($ million)                             22.27       13.20       9.07

    

    

    1. Under the lifting arrangements implemented  by the KRG, the KRG  takes
       title to crude  at the wellhead  and then transports  it to Ceyhan  in
       Turkey by  pipeline.  The crude  is  then sold  by  the KRG  into  the
       international market.  All proceeds  of  sale are  received by  or  on
       behalf of the KRG, out  of which the KRG  then makes payment for  cost
       and profit oil in  accordance with the PSC  to Genel, in exchange  for
       the crude delivered to the KRG. Under these arrangements, payments are
       in fact made by or on behalf of the KRG to Genel, rather than by Genel
       to the KRG. For the purposes  of the reporting requirements under  the
       Regulations however, we are required to characterise the value of  the
       KRG’s entitlement  under  the  PSC (for  which  they  receive  payment
       directly from the  market) as a  payment made to  the KRG.  Therefore,
       estimated value in $millions is not paid to the KRG, and is calculated
       to meet the reporting requirements under the regulations.
    2. The amount reported for Taq Taq is  the gross payment made to the  KRI
       by the operating company (TTOPCO), Genel’s share of these payments  is
       equal to 55% (with the exception of capacity building payments)
    3. The amount reported for Sarta is the gross payment made to the KRI  by
       the operating  company (Genel),  Genel’s share  of these  payments  is
       equal to 50% (with the exception of capacity building payments).
    4. Capacity  building  payments  reported  are  payments  made  by  Genel
       directly to the KRI in cash as required by the PSC.

    

                                     -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). Genel has low-cost  and low-carbon production  from
   the Kurdistan Region of Iraq, and  continues to seek opportunities to  add
   new resilient and  cash-generative assets  to its  portfolio. For  further
   information, please refer to 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: MSCL
   TIDM:          GENL
   LEI Code:      549300IVCJDWC3LR8F94
   Sequence No.:  313629
   EQS News ID:   1873367


    
   End of Announcement EQS News Service

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