DJ Genel Energy PLC: Report on payments to governments
Genel Energy PLC (GENL)
Genel Energy PLC: Report on payments to governments
04-Apr-2024 / 09:00 GMT/BST
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4 April 2024
Genel Energy plc
Report on payments to governments for the year 2023
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 2023 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.
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').
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 - 2023
Country/Licence KRI Total (1) Taq Taq (2) Sarta (3)
Production entitlement (bbls) 303,607.97 162,762.40 140,845.57
Royalties in kind (bbls) 71,094.70 36,775.60 34,319.10
Total (bbls) 374,702.67 199,538.00 175,164.67
Value of production entitlements (USD million) 17.83 10.60 7.23
Value of royalties (USD million) 4.15 2.39 1.76
Capacity building payments (USD million) (3) 0.29 0.21 0.08
Total (USD million) 22.27 13.20 9.07 1. Under the lifting arrangements implemented by the KRG, the KRG takes title to crude at the wellhead andthen transports it to Ceyhan in Turkey by pipeline. The crude is then sold by the KRG into the internationalmarket. All proceeds of sale are received by or on behalf of the KRG, out of which the KRG then makes payment forcost and profit oil in accordance with the PSC to Genel, in exchange for the crude delivered to the KRG. Underthese 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 thevalue of the KRG's entitlement under the PSC (for which they receive payment directly from the market) as a paymentmade to the KRG. Therefore, estimated value in USDmillions is not paid to the KRG, and is calculated to meet thereporting 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. The amount reported for Sarta is the gross payment made to the KRI by the operating company (Genel),Genel's share of these payments is equal to 50% (with the exception of capacity building payments). 4. Capacity building payments reported are payments made by Genel directly to the KRI in cash as required bythe PSC.
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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
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). Genel has low-cost and low-carbon production from the Kurdistan Region of Iraq, and continues to seek opportunities to add new resilient and cash-generative assets to its portfolio. For further information, please refer to www.genelenergy.com
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ISIN: JE00B55Q3P39, NO0010894330 Category Code: MSCL TIDM: GENL LEI Code: 549300IVCJDWC3LR8F94 Sequence No.: 313629 EQS News ID: 1873367 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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