Genel Energy PLC: Update on Bina Bawi and Miran PSCs (1256350)
December 10 2021 - 2:00AM
UK Regulatory
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 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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