Genel gives Update on Trading and Ops

KRI PIPELINE CAPACITY AND EXPORTS

• The KRI oil pipeline from Khurmala to Fishkhabur now has capacity of 700,000 bopd, with plans to increase to 1 mmbopd in 2016 through installation of additional compression
• According to Kurdistan Regional Government ("KRG") data, in May and June 2015 574,400 bopd was exported from northern Iraq to Ceyhan, not taking into account pipeline downtime, representing 20% of total Iraqi crude exports in that period, and underscoring the strategic importance of the KRI pipeline 
• Production from Taq Taq and Tawke is not constrained by pipeline capacity

KRI GAS OPERATIONS

• Progress has been made on all necessary components for the development of the Miran and Bina Bawi fields, which will deliver the gas supply to underpin the  KRI-Turkey Gas Sales Agreement, signed in November 2013:
  • In June 2015, Genel executed a detailed term sheet with the KRG for the upstream production sharing contract, which  retains Genel's upstream project economics in line with the original framework announced in November 2014
  • A company will be contracted by the KRG on a build, own, operate and transfer ("BOOT") basis for the gas treatment facilities. Genel is working with the KRG on the midstream development, currently leading discussions in relation to FEED, EPC tender, and financing options
  • Genel will sign a  gas supply agreement with the KRG for the sale of raw gas from Miran and Bina Bawi
• The sale and purchase agreement for OMV's 36% operated stake in the Bina Bawi field is proceeding in parallel with the progress on the wider gas project, and is expected to complete on the signing of final contracts