Genel Energy PLC: Report on payments to governments (797657)

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 Genel Energy PLC (GENL) 
Genel Energy PLC: Report on payments to governments 
 
09-Apr-2019 / 13:25 GMT/BST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
9 April 2019 
 
      Genel Energy plc 
 
      Report on payments to governments for the year 2018 
 
Introduction and basis for preparation 
 
   This report sets out details of the payments made to governments by Genel 
  Energy plc and its subsidiary undertakings ('Genel') for the year ended 31 
December 2018 as required under the Disclosure and Transparency Rules of the 
      UK Financial Conduct Authority (the 'DTRs') and in accordance with our 
       interpretation of the Industry Guidance issued for the UK's Report on 
 Payments to Governments Regulations 2014, as amended in December 2015 ('the 
    Regulations'). The DTRs require companies in the UK and operating in the 
   extractives sector to publically disclose payments made to governments in 
the countries where they undertake exploration, prospection, development and 
            extraction of oil and natural gas deposits or other materials. 
 
This report is available to download at 
www.genelenergy.com/investor-relations/results-reports-presentations [1]. 
 
            Governments 
 
 All of the payments made in relation to licences in the Kurdistan Region of 
     Iraq ('KRI') have been made to the Ministry of Natural Resources of the 
 Kurdistan Regional Government ('KRG'). All other payments have been made to 
 the national government of the relevant country where the licence is based. 
 
            Production entitlements 
 
Production entitlements are the host government's share of production during 
            the reporting period from projects operated by Genel. Production 
entitlements from projects that are not operated by Genel are not covered by 
this report. The figures reported have been produced on an entitlement basis 
   rather than on a liftings basis. Production entitlements are paid in-kind 
and the monetary value disclosed is derived from management's calculation of 
            revenue from the field. 
 
            Royalties 
 
   Royalties represent royalties paid in-kind to governments during the year 
  for the extraction of oil. The terms of the Royalties are described within 
      our Production Sharing Contracts and can vary from project to project. 
  Royalties have been calculated on the same barrels of oil equivalent basis 
            as production entitlements. 
 
            Materiality threshold 
 
    Total payments below GBP86,000 made to a government are excluded from this 
            report as permitted under the Regulations. 
 
payments to governments - 2018 
 
Country/Licence   KRI Total    Taq Taq  Somaliland  SL  Odewayne 
                     (1)         (2)               10B/ 
                                                    13 
 
Production       2,598,593.83 2,598,593     -       -      - 
entitlement                      .83 
(bbls) 
Royalties in      451,116.66  451,116.6     -       -      - 
kind (bbls)                       6 
Total (bbls)     3,049,710.49 3,049,710     -       -      - 
                                 .49 
 
Value of            169.90     169.90       -       -      - 
production 
entitlements 
($million) 
Value of            29.32       29.32       -       -      - 
royalties 
($million) 
Capacity             6.29       6.29        -       -      - 
building 
payments 
($million) (3) 
Licence fee           -           -        0.13    0.05   0.08 
($million) 
Total ($million)    205.51     205.51      0.13    0.05   0.08 
 
    (1) Under the lifting arrangements implemented by the KRG, the KRG takes 
title to crude at the wellhead and then transports it to Ceyhan in Turkey by 
  pipeline. The crude is then sold by the KRG into the international market. 
  All proceeds of sale are received by or on behalf of the KRG, out of which 
   the KRG then makes payment for cost and profit oil in accordance with the 
   PSC to Genel, in exchange for the crude delivered to the KRG. Under these 
arrangements, payments are in fact made by or on behalf of the KRG to Genel, 
          rather than by Genel to the KRG. For the purposes of the reporting 
requirements under the Regulations, however, we are required to characterise 
    the value of the KRG's entitlement under the PSC (for which they receive 
  payment directly from the market) as a payment made to the KRG. Therefore, 
   estimated value in $millions is not paid to the KRG, and is calculated to 
            meeting the reporting requirements under the Regulations. 
 
(2) The amount reported for Taq Taq, is the gross payment made to the KRI by 
 the operating company (TTOPCO). Genel's share of these payments is equal to 
            55% (with the exception of capacity building payments). 
 
 (3) Capacity building payments reported are payments made by Genel directly 
            to the KRI in cash as required by the PSC. 
 
      -ends- 
 
For further information please contact: 
 
                         Genel Energy [phone] 
 
Andrew Benbow, Head of Communications 
 
                  Vigo Communications [phone] 
 
                     Patrick d'Ancona 
 
            Notes to editors: 
 
       Genel Energy is an independent oil and gas exploration and production 
  company listed on the main market of the London Stock Exchange (LSE: GENL, 
    LEI: 549300IVCJDWC3LR8F94). The Company, with headquarters in London and 
offices in Ankara and Erbil, is one of the largest London-listed independent 
   oil producers, and is the largest holder of reserves and resources in the 
   Kurdistan Region of Iraq. Genel has highly cash-generative oil production 
    from the Taq Taq and Tawke licences, with material growth potential from 
other assets in the portfolio. Genel also continues to pursue further growth 
 opportunities. For further information, please refer to www.genelenergy.com 
            [2]. 
 
ISIN:          JE00B55Q3P39 
Category Code: MSCL 
TIDM:          GENL 
LEI Code:      549300IVCJDWC3LR8F94 
Sequence No.:  8146 
EQS News ID:   797657 
 
End of Announcement EQS News Service 
 
 
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(END) Dow Jones Newswires

April 09, 2019 08:26 ET (12:26 GMT)