REG-Genel Energy PLC Genel Energy PLC: Update on Kurdistan pipeline exports

Genel EnergyAnnouncement

27/03/2023 07:15

============

   Genel Energy PLC (GENL)
   Genel Energy PLC: Update on Kurdistan pipeline exports

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

   ══════════════════════════════════════════════════════════════════════════

   27 March 2023

    

                                Genel Energy plc

                                        

                      Update on Kurdistan pipeline exports

                                        

   Genel Energy  plc ('Genel'  or 'the  Company') has  been informed  by  the
   Kurdistan  Pipeline  Company  that  the  Iraq-Turkiye  pipeline  has  been
   shut-in. The Company understands  this shut-in has  been requested by  the
   Republic of  Turkiye. Public  statements  made by  both the  Federal  Iraq
   Ministry of Oil (‘MoO’) and the Kurdistan Regional Government (‘KRG’) lead
   Genel to believe  the shut-in will  be temporary, and  Genel continues  to
   produce oil into storage facilities.

    

   This follows  the International  Chamber of  Commerce in  Paris ruling  in
   favour of  Iraq  in the  long  running arbitration  case  against  Turkiye
   concerning the Iraqi-Turkish pipeline agreement signed in 1973.

    

     • The MoO has stated that, “it will discuss the mechanisms of  exporting
       Iraqi oil  through  the Turkish  Port  of Ceyhan  with  the  concerned
       authorities  in   the   Kurdistan    region  and   with  the   Turkish
       authorities”, and  that “it  is in  the interest  of the  Ministry  to
       export the full  quantities allocated from  all oil fields,  including
       the  Kurdistan  region, with the aim of maximising financial revenues,
       to supplement the federal budget.”

     • The KRG’s Ministry  of Natural  Resources (‘MNR’)  issued a  statement
       noting that  in relation  to the  budget, and  regarding oil  exports,
       there was “an  initial agreement  and a good  understanding under  the
       umbrella  of  the  constitution  and  the  constitutional  rights  and
       entitlements of the Kurdistan Region.”
     • The Prime  Minister of  Kurdistan, Masrour  Barzani, stated  that  the
       KRG’s “recent understandings with Baghdad have laid the groundwork for
       us  to  overcome  the  arbitration  ruling”.  He  also  noted  that  a
       delegation from the  KRG was  in Baghdad  yesterday “to  build on  the
       goodwill of our discussions.”

    

   Genel welcomes the statements from both the MoO and MNR, and the  comments
   from both regarding  ongoing facilitation  of exports  from the  Kurdistan
   Region of Iraq.

    

   Genel also notes  the references  to the draft  three-year federal  budget
   approved by the Iraqi Cabinet earlier  this month, to be submitted to  the
   Iraqi Parliament for final approval, which includes a mechanism to  ensure
   ongoing exports  of 400,000  bopd of  Kurdistan production  in return  for
   federal budget transfers. The budget was agreed at the same time that Iraq
   completed a budget transfer of 400  billion dinar (c.$275 million) to  the
   KRG.

    

   The Company will update the market when required.

    

                                     -ends-

    

   For more 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

   ══════════════════════════════════════════════════════════════════════════

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

   ══════════════════════════════════════════════════════════════════════════

   ISIN:          JE00B55Q3P39, NO0010894330
   Category Code: MSCH
   TIDM:          GENL
   LEI Code:      549300IVCJDWC3LR8F94
   Sequence No.:  232564
   EQS News ID:   1592407


    
   End of Announcement EQS News Service

   ══════════════════════════════════════════════════════════════════════════

    2 fncls.ssp?fn=show_t_gif&application_id=1592407&application_name=news&site_id=reuters8

References

   Visible links
   1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=3ec46b352f38452116096dbbab51b09e&application_id=1592407&site_id=reuters8&application_name=news


============