The commercialisation of Genel’s major onshore, low-cost, gas resource has the potential to generate significant revenue and value for the people of the Kurdistan Region of Iraq. 

Negotiations between Genel and the KRG are ongoing regarding commercial terms for a staged and integrated oil and gas development.

In line with Genel’s strategy, the development of Bina Bawi (and in the future, Miran) is set to be done in phases. Through disciplined allocation of capital, Genel is focused on aligning stakeholders and setting the framework for an attractive and investable project.

Genel and the KRG are aligned on a phase one upstream project scope delivering a reduced c.250 MMscfd raw gas. The KRG and Genel will jointly fund the midstream gas development required to process the raw gas, partly making use of revenues from the accelerated development of Bina Bawi oil.

Negotiations between Genel and the KRG regarding commercial terms for the gas and oil development at Bina Bawi made significant progress in the third quarter of 2019, resulting in an understanding on commercial terms for a staged and integrated oil and gas development being reached. 

Extensive documentation was received in mid-April. 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.