Genel Energy PLC (GENL)
1 May 2020
Genel Energy plc
Update on Bina Bawi PSC
Genel Energy plc ('Genel' or 'the Company') provides the following update on the Bina Bawi PSC.
Extensive documentation was received in mid-April from the Kurdistan Regional Government ('KRG') following the commercial understanding reached in September 2019. The documentation, which requires further negotiation, includes a new draft Production Sharing Contract ('PSC') that seeks to separate the Jurassic oil development from the deeper Triassic natural gas development, with oil being developed on standard terms for the Kurdistan Region of Iraq.
Genel has been informed by the KRG that while negotiations are ongoing with respect to these documents it will not exercise the notice of an intention to terminate the Bina Bawi PSC. Genel continues to seek a viable and balanced commercial way forward for the development of Bina Bawi's gas and oil resources, and is constructively engaging with the KRG to accelerate progress.
Genel continues to minimise spending on Bina Bawi until further tangible progress is made during these negotiations.
For further information, please contact:
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 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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