Negotiations Continue on Iraqi Oilfield

After Genel Energy plc said negotiations were continuing regarding the Bina Bawi field in Iraqi Kurdistan, shares in the company were trading lower on Friday.

In a statement, the company said: "Extensive documentation was received in mid-April from the Kurdistan Regional Government ('KRG') following the commercial understanding reached in September 2019. The documentation, which requires further negotiation, includes a new draft Production Sharing Contract ('PSC') that seeks to separate the Jurassic oil development from the deeper Triassic natural gas development, with oil being developed on standard terms for the Kurdistan Region of Iraq. Genel has been informed by the KRG that while negotiations are ongoing with respect to these documents it will not exercise the notice of an intention to terminate the Bina Bawi PSC. Genel continues to seek a viable and balanced commercial way forward for the development of Bina Bawi's gas and oil resources, and is constructively engaging with the KRG to accelerate progress. Genel continues to minimize spending on Bina Bawi until further tangible progress is made during these negotiations."