GENEL ENERGY (LON:GENL) Genel Energy PLC: Report on payments to governments

Transparency directive : regulatory news

04/04/2024 10:00

Genel Energy PLC (GENL)
Genel Energy PLC: Report on payments to governments

04-Apr-2024 / 09:00 GMT/BST


4 April 2024


Genel Energy plc


Report on payments to governments for the year 2023

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 2023 as required under the Disclosure and Transparency Rules of the UK Financial Conduct Authority (the ‘DTRs’) and in accordance with our interpretation of the 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.



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’).


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 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.

Materiality threshold

Total payments below £86,000 made to a government are excluded from this report as permitted under the Regulations.


payments to governments – 2023



KRI Total (1)

Taq Taq (2)

Sarta (3)


Production entitlement (bbls)




Royalties in kind (bbls)




Total (bbls)





Value of production entitlements ($ million)




Value of royalties ($ million)




Capacity building payments ($ million) (3)




Total ($ million)






  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. Therefore, estimated value in $millions is not paid to the KRG, and is calculated to meet the reporting requirements under the regulations.
  2. The amount reported for Taq Taq is the gross payment made to the KRI by the operating company (TTOPCO), Genel’s share of these payments is equal to 55% (with the exception of capacity building payments)
  3. The amount reported for Sarta is the gross payment made to the KRI by the operating company (Genel), Genel’s share of these payments is equal to 50% (with the exception of capacity building payments).
  4. Capacity building payments reported are payments made by Genel directly to the KRI in cash as required by the PSC.




For further information please contact:


Genel Energy

Andrew Benbow, Head of Communications

+44 20 7659 5100



Vigo Consulting

Patrick d’Ancona

+44 20  7390 0230


Notes to editors:


Genel Energy is a socially responsible oil producer listed on the main market of the London Stock Exchange (LSE: GENL, LEI: 549300IVCJDWC3LR8F94). Genel has low-cost and low-carbon production from the Kurdistan Region of Iraq, and continues to seek opportunities to add new resilient and cash-generative assets to its portfolio. For further information, please refer to www.genelenergy.com



Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

ISIN: JE00B55Q3P39, NO0010894330
Category Code: MSCL
LEI Code: 549300IVCJDWC3LR8F94
Sequence No.: 313629
EQS News ID: 1873367

End of Announcement EQS News Service


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