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

Genel EnergyAnnouncement

10/12/2021 07:05

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

   10-Dec-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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   10 December 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 Production Sharing Contracts ('PSCs').

    

   Further to  Genel's  announcement  of  20  August  2021  that  notices  of
   intention to terminate the Bina Bawi and Miran PSCs had been received from
   the Ministry of  Natural Resources  of the  Kurdistan Regional  Government
   ('KRG'), Genel  has received  from the  KRG formal  notices purporting  to
   terminate the PSCs. The  KRG has also stated  that, pending resolution  of
   the dispute as  to whether  such notices  are effective  to terminate  the
   PSCs, it will  not perform  those obligations  under the  PSCs that  would
   enable Genel  to progress  the  development of  the  Bina Bawi  and  Miran
   fields.             

    

   Since entering into the PSCs in February 2017, Genel has made every effort
   to engage with  the KRG  on the  development of  the Bina  Bawi and  Miran
   fields and has submitted numerous development proposals to the KRG for its
   approval. However, the KRG has for some time made clear its intention  not
   to permit the development  of the fields in  accordance with the terms  of
   the PSCs.

    

   In these circumstances, the  Board has concluded that  it is left with  no
   practical alternative but  to accept  that the  PSCs are  terminated as  a
   consequence of the KRG's repudiatory breach and to claim compensation from
   the KRG. Genel's claims  are substantial and will  be brought in a  London
   seated international arbitration  to be commenced  in accordance with  the
   disputes process set out in the PSCs.

    

   Genel has a long and constructive relationship with the KRG, and continues
   to work with the KRG on the development of our other assets, as we look to
   deliver our  mutual goal  of  increasing production  in  the KRI  for  the
   benefit of all stakeholders.

    

   Genel will update the market on future developments.

    

   Following the  termination  of  the PSCs,  the  balances  associated  with
   holding title to  these PSCs  will be derecognised  and therefore  removed
   from the balance sheet.

    

                                     -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 

    

   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: MSCH
   TIDM:          GENL
   LEI Code:      549300IVCJDWC3LR8F94
   Sequence No.:  129284
   EQS News ID:   1256350


    
   End of Announcement EQS News Service

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