Genel Energy has completed the documentation of the earlier agreed terms of amended and restated Production Sharing Contracts (PSCs) and Gas Lifting Agreements (GLAs) for the Miran and Bina Bawi gas fields in Kurdistan.
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These amended PSCs and GLAs include all commercial terms according to the term sheets signed by Genel and the Kurdistan Regional Government (KRG) in 2015.
Genel Energy chief executive Murat Özgül said: “We are very pleased to have signed definitive agreements for our gas project and are now focused on the next step of concluding negotiations with potential partners, and moving the gas project towards the FID.
“We are determined that 2017 will be a watershed year as we seek to create a gas business that will be transformational for both Genel and the KRG.”
Genel can now advance the development of both these low-cost and onshore gas fields that are scheduled to export gas to Turkey as per the 2013 KRG-Turkey Gas Sales Agreement.
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By GlobalDataThe GLAs contain conditions that include the execution of final agreements regarding the midstream gas processing facilities and pipeline transportation.
The GLAs are also subject to the execution of financing documents and the completion of updated reports for Miran and Bina Bawi.
Both Genel and the KRG have the right to terminate the GLAs by February next year.
If the conditions are not satisfied within 12 months, KRG can terminate the GLAs.
If the GLAs are terminated and the new gas lifting agreements also fail to close within one year, KRG holds the right to terminate the Miran and Bina Bawi PSCs.
In the subsequent three years after the termination, Genel Energy reserves the right of first refusal to participate in the development of Miran and Bina Bawi gas fields with a 49% working interest under the same terms offered to any third party.
Image: An exploration well in the Miran field. Photo: courtesy of Genel Energy.
