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 +44 20 7659 5100
Andrew Benbow, Head of Communications
Vigo Communications +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 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
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April 17, 2020 02:00 ET (06:00 GMT)
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