Genel Energy Updates on Kurdish Operations

Genel Energy on Monday said progress has been made on all necessary components for the development of the Miran and Bina Bawi fields in Kurdish Region of Iraq (KRI).

The fields 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 Kurdish government 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 Kurdish government on a build, own, operate and transfer (BOOT) basis for the gas treatment facilities, the company said. Genel is working with the regional government 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 Kurdish government for the sale of raw gas from Miran and Bina Bawi.

The sale and purchase agreement for OMV’s 36 percent 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, Genel announced. 

Genel Energy has a 75 percent interest in the Miran discovery following the Kurdish government back-in and in 2014 reached key terms with OMV to acquire its 36 percent operated stake, which will result in Genel having a 100 percent stake in the Bina Bawi field.

Genel’s current estimate of combined gross mean raw gas resources at Miran and Bina Bawi is 11.4 tcf, which is expected to deliver gross mean sales gas of 8.4 tcf.