Genel Energy PLC Report on payments to governments (4783D)
April 27 2017 - 4:00AM
UK Regulatory
TIDMGENL
RNS Number : 4783D
Genel Energy PLC
27 April 2017
Report on payments to governments for the year 2016
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 2016 as required under the Disclosure
and Transparency Rules of the UK Financial Conduct Authority (the
'DTRs') and in accordance with our interpretation of the draft
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'). All
other payments have been made to the national governments 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.
Licence fees
These are fees and other sums paid as consideration for
acquiring a licence for gaining access to an area where extractives
are performed.
Materiality threshold
Total payments below GBP86,000 made to a government are excluded
from this report as permitted under the Regulations.
payments to governments - 2016
Kurdistan
Total Taq Taq Tawke Morocco Mir Somaliland
Country/Licence (1) (2) (3) Total Left Total Odewayne SL-10B/SL-13
------------------ -------------- -------------- ------- -------- ------ ----------- --------- -------------
Payments in bbls
-------------------------------------------------------------------------------------------------------------------
Production
entitlement
(bbls) 13,799,444.39 13,799,444.39 - - - - -
------------------ -------------- -------------- ------- -------- ------ ----------- --------- -------------
Royalties in kind
(bbls) 2,201,957.06 2,201,957.06 - - - - -
------------------ -------------- -------------- ------- -------- ------ ----------- --------- -------------
Total (bbls) 16,001,401.45 16,001,401.45 - - - - -
------------------ -------------- -------------- ------- -------- ------ ----------- --------- -------------
*Estimated value in $millions (this amount is not paid to the
KRG, and is calculated to meet the reporting requirements under
the Regulations)
-------------------------------------------------------------------------------------------------------------------
Value of
production
entitlements
($million) 522.94* 522.94 - - - - -
------------------ -------------- -------------- ------- -------- ------ ----------- --------- -------------
Value of
royalties
($million) 83.17 83.17 - - - - -
------------------ -------------- -------------- ------- -------- ------ ----------- --------- -------------
Licence fees
($million) - - 0.15 0.15 0.49 0.15 0.34
------------------ -------------- -------------- ------- -------- ------ ----------- --------- -------------
Capacity building
payments(4) 24.5 13.6 10.9
------------------ -------------- -------------- ------- -------- ------ ----------- --------- -------------
Total ($million) 630.61 619.71 10.9 0.15 0.15 0.49 0.15 0.34
------------------ -------------- -------------- ------- -------- ------ ----------- --------- -------------
(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.
(2) The amount reported for Taq Taq, with the exception of
Capacity Building Payments, is the gross payment made to the KRI by
the operating company (TTOPCO), Genel's share of these payments is
equal to 55%.
(3) Payments in relation to Tawke are made by the Operator with
the exception of capacity building payments which are made directly
by Genel in relation to our interest in the Tawke Production
Sharing Contract.
(4) Capacity building payments reported are payments made by
Genel directly to the KRI in cash as required by the Production
Sharing Contract.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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