Genel Energy: Trading and Operations Update

OPERATIONS UPDATE

KRI Oil Assets

KRI independent pipeline export infrastructure

During the fourth quarter of 2013, the final phase of the KRI independent export pipeline infrastructure from Dohuk to Fishkabur was completed and tied-in to the Iraq-Turkey-Pipeline via a new metering station within the KRI. Since then, commissioning and line-fill operations have been progressing in parallel. Test flows commenced in December 2013 and first KRI oil through the new pipeline reached Ceyhan in Turkey early in 2014.

On 8 January, the KRG announced that first export sales via the pipeline are expected to commence in the near future. Sales volumes are expected to ramp up over the remainder of the year. Genel expects that thepipeline system will be fully commissioned during 2Q 2014 once required upgrades to pumping stations on the KRI section of the pipeline are completed.

Taq Taq PSC (44% working interest, joint operator)

The Taq Taq field produced an average of 77,000bopd in 2013, compared to 75,500bopd in 2012. Trucked exports to international markets via Turkey commenced in January 2013 and steadily increased over the year, and on certain days in 2H 2013 totalled c.70,000bopd. Over the course of the year exports averaged c.20,000bopd with the remainder being domestic deliveries (including the Bazian refinery).

The 2014 activity plan envisages the drilling of four further production wells, including a highly deviated well and the first horizontal well on the field. Construction of the second Central Processing Facility is progressing and is now targeted for completion in 4Q 2014.

The Taq Taq Deep well, targeting Jurassic and Triassic intervals beneath the main producing Cretaceous reservoirs in the field, is drilling ahead. The well is currently at 4,200 metres with a planned target depth of 5,400 metres. Results are expected in 1Q 2014.