Genel Energy PLC: Report on payments to governments (797657)
April 09 2019 - 8:26AM
UK Regulatory
Dow Jones received a payment from EQS/DGAP to publish this press
release.
Genel Energy PLC (GENL)
Genel Energy PLC: Report on payments to governments
09-Apr-2019 / 13:25 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
9 April 2019
Genel Energy plc
Report on payments to governments for the year 2018
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 2018 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 [1].
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'). All other payments have been made to
the national government of the relevant country where the licence is based.
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 GBP86,000 made to a government are excluded from this
report as permitted under the Regulations.
payments to governments - 2018
Country/Licence KRI Total Taq Taq Somaliland SL Odewayne
(1) (2) 10B/
13
Production 2,598,593.83 2,598,593 - - -
entitlement .83
(bbls)
Royalties in 451,116.66 451,116.6 - - -
kind (bbls) 6
Total (bbls) 3,049,710.49 3,049,710 - - -
.49
Value of 169.90 169.90 - - -
production
entitlements
($million)
Value of 29.32 29.32 - - -
royalties
($million)
Capacity 6.29 6.29 - - -
building
payments
($million) (3)
Licence fee - - 0.13 0.05 0.08
($million)
Total ($million) 205.51 205.51 0.13 0.05 0.08
(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
meeting 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) 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 Communications +44 20 7830 9700
Patrick d'Ancona
Notes to editors:
Genel Energy is an independent oil and gas exploration and production
company listed on the main market of the London Stock Exchange (LSE: GENL,
LEI: 549300IVCJDWC3LR8F94). The Company, with headquarters in London and
offices in Ankara and Erbil, is one of the largest London-listed independent
oil producers, and is the largest holder of reserves and resources in the
Kurdistan Region of Iraq. Genel has highly cash-generative oil production
from the Taq Taq and Tawke licences, with material growth potential from
other assets in the portfolio. Genel also continues to pursue further growth
opportunities. For further information, please refer to www.genelenergy.com
[2].
ISIN: JE00B55Q3P39
Category Code: MSCL
TIDM: GENL
LEI Code: 549300IVCJDWC3LR8F94
Sequence No.: 8146
EQS News ID: 797657
End of Announcement EQS News Service
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=6b616b006e6f2b355dc8671361bd7260&application_id=797657&site_id=vwd_london&application_name=news
2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=3ec46b352f38452116096dbbab51b09e&application_id=797657&site_id=vwd_london&application_name=news
(END) Dow Jones Newswires
April 09, 2019 08:26 ET (12:26 GMT)
Genel Energy (LSE:GENL)
Historical Stock Chart
From Aug 2024 to Sep 2024
Genel Energy (LSE:GENL)
Historical Stock Chart
From Sep 2023 to Sep 2024