Genel Energy PLC: Update on payments for KRI oil sales

Genel Energy PLC (GENL) 
Genel Energy PLC: Update on payments for KRI oil sales 
 
17-Apr-2020 / 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. 
 
                      17 April 2020 
 
           Genel Energy plc 
 
           Update on payments for KRI oil sales 
 
 Genel Energy plc ('Genel' or 'the Company') announces that payment has been 
received from the Kurdistan Regional Government ('KRG') for oil sales during 
                      March 2020. 
 
 The Taq Taq partners have received a gross payment of $4.6 million. Genel's 
 net share of the payment is $2.5 million.1 The Tawke partners have received 
     a gross payment of $34.6 million, with Genel's net share of the payment 
                      being $8.5 million. 
 
The payment has been made according to recent proposals sent from the KRG to 
international oil companies operating in the Kurdistan Region of Iraq. Under 
                      the KRG proposals: 
 
  - The KRG commits to settling monthly sales invoices by the fifteenth day 
  of the following month 
 
  - Tawke production override payments will be suspended for at least nine 
  months 
 
  - Payment of invoices relating to oil sales from November 2019 to February 
  2020 will be deferred, interest free, for at least nine months 
 
  - Should the oil price recover to c.$50/bbl, a payment programme to 
  recover the deferred invoices will be put in place 
 
    Genel welcomes the KRG's approach to establish a framework that provides 
         clarity and predictability for overdue and future payments, and the 
commitment to full repayment of deferred invoices as the oil price recovers. 
Genel has requested clarification regarding the repayment mechanism, and has 
      responded to the KRG with a proposal that balances the KRG's near-term 
  liquidity challenges with longer-term developments benefiting both the KRG 
  and Genel. The Company will provide further detail as discussions with the 
                      KRG progress. 
 
   1 Genel notes that this payment has been paid on a basis that limits cost 
      oil recovery to 40% of March 2020 field revenue and excludes otherwise 
available unutilised cost oil capacity from January and February 2020. Genel 
  has reserved all its rights to payment in full under the Taq Taq PSC terms 
 
           -ends- 
 
                      For further information, please contact: 
 
Genel Energy                          [phone] 
 
Andrew Benbow, Head of Communications 
 
Vigo Communications                   [phone] 
 
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 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 [1]. 
 
ISIN:          JE00B55Q3P39 
Category Code: MSCM 
TIDM:          GENL 
LEI Code:      549300IVCJDWC3LR8F94 
Sequence No.:  58752 
EQS News ID:   1023575 
 
End of Announcement EQS News Service 
 
 
1: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=3ec46b352f38452116096dbbab51b09e&application_id=1023575&site_id=vwd&application_name=news 
 

(END) Dow Jones Newswires

April 17, 2020 02:00 ET (06:00 GMT)