REG-Genel Energy PLC Genel Energy PLC: Update on Bina Bawi and Miran PSCs

Genel EnergyAnnouncement

20/08/2021 07:05

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   Genel Energy PLC (GENL)
   Genel Energy PLC: Update on Bina Bawi and Miran PSCs

   20-Aug-2021 / 07:00 GMT/BST
   Dissemination of a Regulatory Announcement that contains inside
   information according to REGULATION (EU) No 596/2014 (MAR), transmitted by
   EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   20 August 2021

                                        

                                Genel Energy plc

                                        

                       Update on Bina Bawi and Miran PSCs

    

   Genel Energy plc ('Genel') provides the following update on the Bina  Bawi
   and Miran PSCs.

    

   Genel has received notice  from the Ministry of  Natural Resources of  the
   Kurdistan Regional Government  ('KRG') of its  intention to terminate  the
   Bina Bawi and Miran PSCs. 

    

   Genel believes that  the KRG  has no grounds  for issuing  its notices  of
   intention to terminate. 

    

   Genel wishes to continue  operations under the PSCs  and to work with  the
   KRG on the development of these fields. However, Genel will take steps  to
   protect its rights under  the PSCs and,  if necessary, seek  compensation,
   including for its material investment. As  a first step, Genel intends  to
   issue notice of dispute to the KRG under each PSC, contesting the right of
   the KRG to issue any such termination notice and, in doing so, trigger  an
   obligation to hold good faith negotiations to resolve this matter promptly
   and without the need for either party to refer the matter to international
   arbitration.

    

   As stated at our half-year results, Genel has found it difficult to engage
   the KRG under the PSCs to  obtain the necessary approvals to proceed  with
   the development of the  assets, and every effort  has been made to  obtain
   these so that the projects can be progressed. Genel had earlier reached  a
   commercial understanding with  the KRG  in September 2019  to develop  the
   fields using a staged and integrated  oil and gas development concept.  In
   the course of those negotiations leading to updated terms of the  parties'
   agreements, the KRG confirmed to Genel  that it would not serve notice  of
   intention to terminate the PSCs  while these negotiations remain  ongoing.
   Genel has subsequently prepared and submitted proposals to the KRG,  which
   honoured the terms  agreed in  September 2019,  each of  which would  have
   resulted in the progression of development of the assets.

    

                                     -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 

    

   This announcement includes inside information.

    

   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 Sarta, Taq Taq, and  Tawke
   licences in the Kurdistan Region  of Iraq, providing financial  resilience
   that allows  investment  in growth  and  the  payment of  a  material  and
   sustainable dividend, even  at a low  oil price. Genel  also continues  to
   pursue further growth opportunities. For further information, please refer
   to  1 www.genelenergy.com.

    

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   ISIN:          JE00B55Q3P39, NO0010894330
   Category Code: MSCM
   TIDM:          GENL
   LEI Code:      549300IVCJDWC3LR8F94
   Sequence No.:  120415
   EQS News ID:   1227828


    
   End of Announcement EQS News Service

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