Published On:May 6 2020
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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.