Genel Energy, DNO Deal for Summail Gas

Genel Energy plc holds a 40 percent interest in the Dohuk licence. DNO International holds a 40 percent operated interest and the Kurdistan Regional Government the remaining 20 percent interest.

Tony Hayward, Chief Executive of Genel, said:

"The signing of the first domestic gas sales agreement in Kurdistan is a significant milestone in the development of the gas industry in the Kurdistan Region of Iraq, and the first step in Genel's gas monetisation strategy, an important value driver for the business going forward."

Bijan Mossavar-Rahmani, DNO International's Executive Chairman, said:

"We are pleased to be the first to sign a commercial gas sales agreement with a state buyer in Kurdistan. Development of Summail is a win-win as we contribute to lowering fuel costs in local power generation while growing and diversifying the Company's production and revenue base."

KRG Prime Minister, Nechirvan Barzani, added:

"This agreement will bring significant savings in the high cost of diesel imports to the Region and has important environmental benefits."

KRG Energy Minister, Ashti Hawrami, commented:

"With commissioning and tie-ins to the well, gas could be delivered as early as January 2014, but certainly no later than March ... We are on track with our objective to fuel all the Kurdistan Region’s electricity generating stations with natural gas in the next three years."

(Sources: KRG, Genel Energy, DNO)

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