Genel Trading Update: "Operations Secure"

Infrastucture and Politics

  • Genel's operations in the KRI remain safe and secure
  • KRG crude export sales through Ceyhan are currently at c.300,000 bopd, rising to 400,000 bopd by year-end and 500,000 bopd in Q1 2015
  • A total of c.23 million barrels of KRI pipeline crude have been exported from Ceyhan in 30 liftings, with a three month track record of predictable sales seeing 24 of these cargoes sold and five en route to customers
  • The KRG has given a firm commitment to paying contractors in full, with an initial payment to be made in November 2014 and further payments to follow on a regular basis. A normalised payment mechanism is expected in Q1 2015 as increasing pipeline exports deliver budget equilibrium for the KRG

KRI Gas Business

  • Genel and the MNR have signed an agreement governing the development of the Miran and Bina Bawi gas fields, materially de-risking the gas business and unlocking significant value
  • Final PSC amendments are expected to be completed by year-end, with a final investment decision planned for H1 2015
  • Genel also announces that it has agreed key terms with OMV to acquire OMV's 36% operated interest in the Bina Bawi field. The total consideration will be $150 million, of which $20 million is payable on completion of the deal and the remaining $130 million in two instalments following first gas production
  • Full details of the MNR agreement and the Bina Bawi acquisition are announced separately this morning
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