Genel Energy PLC: Report on payments to governments (1180418)
April 01 2021 - 5:00AM
UK Regulatory
Genel Energy PLC (GENL)
Genel Energy PLC: Report on payments to governments
01-Apr-2021 / 10:00 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
=----------------------------------------------------------------------------------------------------------------------
1 April 2021
Genel Energy plc
Report on payments to governments for the year 2020
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 2020 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.
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').
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 - 2020
Country/Licence KRI Total (1) Taq Taq (2)
Production entitlement (bbls) 1,580,718.64 1,580,718.64
Royalties in kind (bbls) 355,074.89 355,074.89
Total (bbls) 1,935,793.53 1,935,793.53
Value of production entitlements (USD million) 56.98 56.98
Value of royalties (USD million) 12.71 12.71
Capacity building payments (USD million) (3) 2.59 2.59
Total (USD million) 72.28 72.28 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 USDmillions 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
+44 20 7659 5100
Andrew Benbow, Head of Communications
Vigo Communications
+44 20 7830 9700
Patrick d'Ancona
Notes to editors:
Genel Energy is a socially responsible oil producer listed on
the main market of the London Stock Exchange (LSE: GENL, LEI:
549300IVCJDWC3LR8F94). The Company is one of the largest
London-listed independent hydrocarbon producers, with an asset
portfolio that positions us well for a future of fewer and better
natural resources projects. Genel has low-cost and low-carbon
production from the Sarta, Taq Taq, and Tawke licences in the
Kurdistan Region of Iraq, providing financial resilience that
allows investment in growth and the payment of a material and
sustainable dividend, even at a low oil price. Genel also continues
to pursue further growth opportunities. For further information,
please refer to www.genelenergy.com.
-----------------------------------------------------------------------------------------------------------------------
ISIN: JE00B55Q3P39, NO0010894330
Category Code: MSCL
TIDM: GENL
LEI Code: 549300IVCJDWC3LR8F94
Sequence No.: 96759
EQS News ID: 1180418
End of Announcement EQS News Service
=------------------------------------------------------------------------------------
(END) Dow Jones Newswires
April 01, 2021 05:00 ET (09:00 GMT)
Genel Energy (LSE:GENL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Genel Energy (LSE:GENL)
Historical Stock Chart
From Apr 2023 to Apr 2024