Genel Energy Strikes New Deals in KRI

The benefits to Genel are as follows:

• The new structure will deliver attractive life of field returns and unlock significant value in Genel's gas business
• One PSC covering Miran and Bina Bawi simplifies the structure of the gas business
• Acquiring OMV's Bina Bawi interest will consolidate the ownership structure across both fields, streamline project management and provide flexibility in meeting development goals
• Gross contractor capital investment to first gas is reduced to c.$1 billion for the combined Miran and Bina Bawi developments
• Drilling activity and investment phased from 2016 onwards

Tony Hayward, chief executive of Genel Energy, said:

"These agreements represent a win-win in the commercialisation of Miran and Bina Bawi. It materially de-risks the value of Genel's gas business, gives attractive project returns while significantly lowering our capital exposure, and provides revenues from early oil production.

"For the KRG, it unlocks the Miran and Bina Bawi gas resource and will enable it to satisfy domestic gas demand and its obligations under the KRG-Turkey Gas Sales Agreement. We are proud to be playing a key role in the next phase of the development of the KRI oil and gas sector."

(Sources: Genel Energy)