Page 10 - MEOG Week 34 2021
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MEOG PROJECTS & COMPANIES MEOG
KRG looks to terminate
two Genel licences
KURDISTAN IRAQI Kurdistan’s Ministry of Natural to refer the matter to international arbitration”.
Resources (MNR) this week announced that it During its first half results, Genel said that
plans to terminate the production-sharing con- discussions remain ongoing for Bina Bawi and
tracts (PSCs) for Bina Bawi and Miran which are Miran, progress on which has been complicated
100% held by London-listed Genel Energy. by a lack of agreement for the up- and midstream
In a press release, Genel said that the Kurd- elements of the projects.
istan Regional Government (KRG) “has no At the time, the company said: “Progression
grounds for issuing its notices of intention to of these projects is outside the control of man-
terminate”, adding that it will act to counter the agement and is dependent on the progress of
move. government discussions … The KRG and the
The company said that it “wishes to continue Company have been focusing on progressing
operations under the PSCs and to work with the the Bina Bawi asset first, with success on Bina
KRG on the development of these fields” not- Bawi likely to inform both of the likely structure,
ing that it would “take steps to protect its rights midstream and downstream solution for Miran.”
under the PSCs and, if necessary, seek compen- It added that a “lack of progress on Bina Bawi
sation, including for its material investment”. could result in significant delays in value realisa-
In the first instance, it will issue a notice of tion and consequently a materially lower asset
dispute for each of the PSCs, “contesting the right value for both assets”.
of the KRG to issue any such termination notice During the negotiations, Genel said that
and, in doing so, trigger an obligation to hold it had been told by the KRG that the Kurdish
good faith negotiations to resolve this matter authorities would no serve notice of intention to
promptly and without the need for either party terminate the PSCs while talks were ongoing.
P10 www. NEWSBASE .com Week 34 25•August•2021
