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Iraq Business
08-05-2025
- Business
- Iraq Business
Genel Energy issues Trading and Ops Update
By John Lee. Genel Energy has issued a trading and operations update relating to Q1 2025. Regarding the company's operations in Iraqi Kurdistan, it said: Kurdistan Region of Iraq Operations Gross production of 82,081 bopd in Q1 2025 (increased from 74,140 bopd in Q4 2024) from the Tawke license Working interest production of 20,520 bopd (up from 18,540 bopd in Q4 2024) Q1 2025 sales price remained consistent at around $35/bbl Exit from Sarta and Qara Dagh licenses has been approved by the Kurdistan Regional Government (KRG) Tawke PSC (Production Sharing Contract) continues to deliver consistent production and generate significant cash flow despite discounted domestic sales prices Tawke and Peshkabir fields demonstrate strong operational performance and cost efficiency compared to other fields in the region Financial Matters Related to Kurdistan Balances with KRG have changed: Gross reported nominal receivables decreased to $99 million (from $107 million at YE2024) Payables reduced to around $40 million (from around $50 million at YE2024) Arbitration costs award made by the Tribunal for amounts owed to the KRG by Genel Energy Miran Bina Bawi Limited is approximately $27 million (reduced from $36 million claimed by KRG) GEMBBL has appealed this costs award to the High Court Iraq-Turkey Pipeline Situation Talks between the Kurdistan Regional Government and Federal Government of Iraq and Ministry of Oil regarding the Iraq-Türkiye Pipeline are ongoing No material progress has been made since March 2025 The timing of the resumption of exports remains uncertain Full statement from Genel Energy: Genel Energy plc ('Genel' or 'the Company') issues the following trading and operations update relating to Q1 2025, ahead of the Company's Annual General Meeting, which is being held today. Paul Weir, Chief Executive of Genel, said: " In line with expectations, the Tawke PSC continues to deliver consistent, reliable production and generate significant cash flow even at the discounted domestic sales prices. The operational performance delivered from the Tawke and Peshkabir fields, together with the significant cost efficiency, continues to set these fields apart from others in the region. "Our entry into Block 54 in Oman is expected to complete in the coming weeks, with first substantial work programme activity commencing around the end of the year. "We continue to work towards diversifying our production, both through expansion of our footprint in Oman as well as the purchase of new assets in other preferred jurisdictions. We addressed the maturity of our bond debt by calling the old bond and issuing a new $100 million bond, thereby increasing available cash and putting in place a capital structure that can provide funding towards delivery on our strategic objectives, regardless of whatever uncertainties may face the business at the macro-economic level. " KURDISTAN Gross production of 82,081 bopd in Q1 2025 (Q4 2024: 74,140 bopd) from the Tawke licence where performance continues to be robust and domestic sales demand reliable Working interest production of 20,520 bopd (Q4 2024: 18,540 bopd) Q1 2025 sales price has been consistent with the previous quarter around $35/bbl Exit from the Sarta and Qara Dagh licences has now been approved by the KRG, in the form of relinquishment and termination agreements with minimal residual potential liabilities OMAN As previously announced, we are delighted to have entered Oman through the award of an interest in Block 54 Royal Decree is expected in the coming weeks and we are working with OQEP, the operator, on planned activity for the second half of the year SOMALILAND On SL10B13 in Somaliland, we continue to work towards achieving conditions that support drilling of the highly prospective Toosan-1 exploration well MOROCCO We have informed ONHYM that we will not be extending beyond the Initial Period of the Lagzira licence to the First Extension Period, and consequently will be abandoning the licence in June 2025 FINANCIAL Net cash of $135 million at 31 March 2025 (YE2024: $131 million) Q1 2025 free cash flow of $5 million (Q4 2024: $1 million free cash outflow) Ahead of guidance due to higher production and some timing differences on spend Tawke free cash flow expected to cover organisational costs this year No spend to date on Oman Cash of $201 million at 31 March 2025 (YE2024: $196 million) In April the Company called $66 million of bonds maturing October 2025 and issued a new $100 million bond maturing April 2030 Balances with KRG Both receivable and payables have reduced as a result of the exit from Sarta and Qara Dagh Gross reported nominal receivables of $99 million, reduced from $107 million at YE2024 Payables of around $40 million, reduced from around $50m million at YE2024 The arbitration costs award made by the Tribunal for amounts owed to the KRG by Genel Energy Miran Bina Bawi Limited ("GEMBBL") is circa $27 million, reduced from the circa $36 million claimed by the KRG GEMBBL has appealed this costs award to the High Court on the grounds that, because the KRG did not provide any breakdown of the amounts claimed by reference to any items of work, the Arbitration Tribunal was unable to assess the reasonableness and proportionality of the recoverable costs and consequently did not have jurisdiction to make an award OUTLOOK Tawke free cash flow at current production and prices is expected to continue to cover organisational costs, with net cash at year-end expected to be about the same as the start of the year Following our entry into Oman, there will be some direct capital investment this year as we work towards testing previously discovered resource Talks between the Kurdistan Regional Government and Federal Government of Iraq and Ministry of Oil regarding the Iraq-Türkiye Pipeline are ongoing, but no material progress has been made since March and the timing of the resumption of exports remains uncertain (Source: Genel Energy)
Iraq Business
19-03-2025
- Business
- Iraq Business
Genel Energy: Tawke delivering "Significant Cash Generation"
Genel Energy has announced its audited results for the year ended 31 December 2024. Paul Weir, Chief Executive of Genel, said: "In 2024, we demonstrated further progress on our journey of building towards delivering resilient, diversified cash flows. Our shift from cash outflow in 2023 to cash generation in 2024 has been important, and in 2025 we expect the cash generated by the Tawke PSC to continue to cover our costs. We are delighted to have established a footprint in the Sultanate of Oman, through our award of an interest in Block 54. This is the first step on our roadmap to diversification. "For 2025, we remain focussed on three principal objectives: maintenance of a strong balance sheet; resilient cash generation from the core business; and the addition of new assets. "For new assets, we will seek both to increase that footprint in Oman, and also acquire assets in other preferred jurisdictions that we have identified as attractive to Genel, with a focus on adding production assets that increase the cash generation and resilience of the business, and provide potential for further growth. "In the Kurdistan Region of Iraq ('KRI') we continue to work with our peers and the Regulator towards the restart of exports on the right terms to ensure our contracts are honoured and we are paid what we are due." Results summary ($ million unless stated) 2024 2023 Average Brent oil price ($/bbl) 81 82 Average realised price per barrel 35 47 Production (bopd, working interest) 19,650 12,410 Revenue 74.7 78.4 Production costs (17.6) (18.0) EBITDAX1 1.1 33.3 Operating loss (52.4) (10.3) Cash flow from operations 66.9 55.1 Capital expenditure 25.7 68.0 Free cash flow2 19.6 (71.0) Cash 195.6 363.4 Total debt 65.8 247.8 Net cash3 130.7 119.7 Basic LPS from continuing operations (¢ per share) (22.5) (6.1) EBITDAX is operating loss adjusted for the add back of depreciation and amortisation, exploration expense, net write-off/impairment of oil and gas assets and net ECL/reversal of ECL receivables Free cash flow is reconciled on page 8 Reported cash less IFRS debt is reconciled on page 8 Highlights Working interest average production increased by 58% to 19,650 bopd (2023: 12,410 bopd) All production sold into the domestic market at average $35/bbl consistent with prior year (2023: $47/bbl, which included export sales prices in Q1) Free cash flow of $20 million, compared to free cash outflow of $71 million last year Tawke free cash flow generation from domestic sales was over $70 million (2023: $28 million), benefiting from some offsetting and also positive working capital movements of around $30 million Organisation cost reductions were offset by non-repeating costs on arbitration, closing out unprofitable licences at Taq Taq and Sarta, and finalising exit from Qara Dagh Closing net cash of $131 million, an increase from $120 million at the start of the year Cash of $196 million (2023: $363 million), with bond debt reduced from $248 million at the start of the year to $66 million at year-end from buybacks and partial exercise of call option $107 million (under KBT pricing and excluding interest) remains overdue from the Kurdistan Regional Government ('KRG') to the Genel subsidiary Genel Energy International Limited ('GEIL') for sales made in previous years. The Company owes the KRG around $50 million. We continue to work towards a plan for payment or settlement of amounts owed, and appropriate adjustment for price and interest We were disappointed that in December 2024 the subsidiary, Genel Energy Miran Bina Bawi Limited ('GEMBBL'), lost the arbitration case brought against it by the KRG regarding the Miran and Bina Bawi gas assets. As previously announced, the KRG is seeking a costs award of over $36 million against GEMBBL Last week, the Company announced its award of an interest in Block 54 in the Sultanate of Oman. This new country entry is an important first step towards strategic diversification of our business Average portfolio carbon intensity again expected to be under 14 kgCO2e/bbl, remaining below the current target for industry average Climate rating: maintained a CDP Climate score of B for a third consecutive year OUTLOOK With domestic sales demand at similar levels to last year and year to date this year, the Company expects cash generation from the Tawke PSC to cover its organisational costs The Company continues to progress towards building a business with a strong balance sheet that delivers resilient, reliable, repeatable and diversified cash flows that supports a dividend programme. The Company objectives for the year on the path to building that business include: acquisition of new assets in Oman and other targeted jurisdiction to add reserves and diversify our cash generation restart of exports to access international pricing recovery of net amounts owed by the KRG further progress towards drilling Toosan-1 The Company has engaged Pareto Securities AS as Manager and Bookrunner to arrange fixed income investor meetings. Subject to market conditions and acceptable terms, a new senior unsecured bond issue with a tenor of five years may follow : CEO STATEMENT We start 2025 leaner and more efficient, and with all the building blocks necessary to establish a bigger and more successful business. Genel has a strong balance sheet and our producing fields within the Tawke PSC form a world-class asset that delivers significant cash generation even when selling at heavily discounted domestic prices because of the suspension of exports. This is a situation that we continue to work on closely with our peers and host government to resolve. Genel has a compact but highly skilled and motivated workforce, dedicated to executing our growth strategy and pursuing value accretive acquisitions that will diversify our geographical footprint within reliable and predictable jurisdictions. In 2024, we continued with the cost reduction exercise and business efficiency improvements that began in 2022. That process extended to continuing the divestment process for non-profitable assets. Taq Taq awaits only government approval before divestment is complete, and relinquishment of our other non-producing legacy assets in the Kurdistan Region of Iraq ('KRI') will also be completed soon. Having delivered these improvements and trimmed our debt levels to improve the capital efficiency of the business, it's time to move on to the next phase. We are very clear on what needs to be done to deliver the appropriate Company growth and deliver the shareholder returns that are necessary for an emerging market exploration and production business. The period of consolidation and efficiency improvement in 2024 must now give way to profitable growth. Genel is delighted to have taken the first step in its growth journey by signing an EPSA in the Sultanate of Oman with OQ Exploration & Production SAOG ('OQEP') as Operator, which will see us participate in the appraisal and development of Block 54. This will see Genel spend modestly over the next three years. The potential on the block is significant and while the eventual returns are not certain at this stage, we believe this move will lead to further exciting opportunities in the region. Oman is a jurisdiction that Genel has long considered as a very attractive place to do business and where we have been made very welcome by both our new partner and the regulator. Back in the KRI, together with our operating partner DNO, we have helped establish a reliable and consistent domestic sales market, which generates very important cash for producers there, albeit at a heavily discounted price. Tawke production currently realises only around $35/bbl, which is well below relevant reference benchmark oil prices. With our peers in the KRI, we continue to work with our host Government and Federal Iraqi authorities to negotiate an arrangement that allows the resumption of international oil sales at international oil prices and that provides appropriate returns for those producing the oil. This has proved to be a sporadic process, but most recent indicators suggest a solution should soon be found; a solution that could double Genel revenue immediately upon implementation. We have worked hard with DNO to ensure spend and delivery performance are optimised. The world-class field operating cost of only $4/bbl and consistent production delivery throughout 2024 are testament to the successful delivery performance of this asset. We have put behind us the disappointment of the outcome of the arbitration on the KRG's termination of the legacy Miran and Bina Bawi licences, where the London Court of International Arbitration ruled in favour of the KRG. We have a clear direction of travel and specific targets that we are pursuing to re-energise the business. Outlook The Company is focussed on delivering on three principal objectives: Strong balance sheet We will retain an appropriate balance that provides protection against outlook downside scenarios and maintain debt at a level that is appropriate for the cash generation of the business Resilient cash generation Realising the full potential of our existing portfolio which includes delivering performance from the Tawke licence, an asset with a long and profitable life ahead of it, and where many opportunities for further investment exist, if conditions permit. Continuing to work with our peers, the Kurdistan Regional Government ('KRG') and the Federal Government of Iraq ('FGI') to support the resumption of international oil sales from the KRI Investment in new cash flows Acquiring the right new assets to re-energise our portfolio and deliver diversified, increased, and more resilient cash generation that will enable us to re-establish a regular long-term dividend for our shareholders We are also focused on establishing the right conditions to support drilling the Toosan-1 exploration well in Somaliland OPERATING REVIEW Reserves and resources development Genel's proven plus probable (2P) net working interest reserves totalled 82 MMbbls (31 December 2023: 89 MMbbls) at the end of 2024. Remaining reserves (MMbbls) Resources (MMboe) Contingent Prospective 1P 2P 1C 2C Best Gross Net Gross Net Gross Net Gross Net Gross Net 31 December 2023 245 63 338 89 13 3 39 10 4,580 2,964 Production (29) (7) (29) (7) - - - - - - Acquisitions and disposals - - - - - - - - - - Extensions and discoveries - - - - - - - - - - New developments - - - - - - - - - - Revision of previous estimates - - - - - - - - 43 32 31 December 2024* 216 56 309 82 13 3 39 10 4,623 2,996 * Subject to final confirmation of Tawke PSC Reserves and Resources by the Operator Production Working interest average production of 19,650 bopd for the year, increased from 12,410 bopd in 2023. All Genel production in 2024 came from the Tawke PSC and was sold into the domestic market at average $35/bbl (2023: $47/bbl). PRODUCING ASSETS Tawke PSC (25% working interest) Gross production from the Tawke licence averaged 78,615 bopd in 2024 (2023: 46,280 bopd), a significant improvement that demonstrates the success in establishing consistent domestic market demand and the success of the asset to meet that demand. In 2024, the Tawke PSC generated over $70 million net cash flow for Genel, benefitting both from strong domestic sales, positive working capital movements and offsetting. Despite drilling no new wells this year, gross production from the Tawke PSC has been maintained at consistent levels. This has been achieved by careful and diligent subsurface and operations management. Three wells that were drilled last year, but not completed due to the closure of the pipeline, were brought onstream mid-year to meet demand from domestic traders. Production performance was further supported by an active well intervention programme. In partnership with DNO, Genel continues to be part of the first Associated Gas Injection (AGI) project in the Kurdistan Region of Iraq ('KRI'). Since its inception the project has saved approximately 2.3 million tonnes of CO2e from entering the atmosphere, with Tawke PSC carbon emissions below the industry average. Taq Taq (44% working interest, joint operator) We divested our 44% working interest in the Taq Taq production sharing contract to our joint venture partner. We have previously reported that Taq Taq had been on care and maintenance since May 2023 because the asset does not generate sufficient revenue at domestic sales prices to cover its operating costs. Furthermore, accessing the 10.3mmbbls of remaining net 2P reserves would require risking of further capital to drill new wells with uncertain outcomes - investment that ranks low on the Company's capital allocation priorities. The terms of the exit leave the Company with minimal residual financial obligations and potential liability exposures. The transaction is subject to Kurdistan Regional Government approval. PRE-PRODUCTION ASSETS Somaliland - SL10B13 (51% working interest, Operator) We continued to work with stakeholders towards the complete framework required to support drilling the Toosan-1 exploration well. This included optimisation of the well plan to reduce cost and maximise efficiency of the well delivery process and consideration of the appropriate equity level at which to be undertaking this activity. In the meantime, our in-country team continued to work closely with our local communities. Genel's Mobile Medical Clinic project in Somaliland, which provided vital medical care for some of the poorest people in Africa, launched phase two of the project in July, with a further 17,000 cases treated to take the total cases treated to more than 35,000. Somaliland - Odewayne (50% working interest, Operator) We continued to work with our partners to characterise the prospectivity of the block, with subsurface studies ongoing. We also continued to invest in the local communities, and in February 2024 delivered educational supplies to 1,000 primary and secondary school students across the block. Morocco (Lagzira block - 75% working interest, Operator) On the Lagzira block (75% working interest and operator), we are continuing the farmout process, seeking partners to test the Banasa Prospect, high graded, having been de-risked by 2024 seismic reprocessing. FINANCIAL REVIEW 2024 financial priorities The table below summarises our progress against the 2024 financial priorities of the Company as set out in our 2023 results. 2024 financial priorities Progress Maintain business resilience and balance sheet strength Developed a consistent dependable income stream through the domestic sales market Reduced cost and divested Taq Taq PSC (subject to KRG approval) Minimised cost of remediation on Sarta and Qara Dagh PSCs Reduced debt by $182 million, with associated decrease in interest cost Net cash of $131 million and cash of $196 million at end of 2024 Ensure capital availability for funding of key strategic objectives Maintained competitive bond market pricing, indicating availability of debt capital when needed Reduced cash levels through debt reduction to improve capital efficiency Ensure appropriate capital allocation Continued reduction in organisation to match needs of the business Deferred expenditure on non-cash generative projects Optimised processes and systems to improve operational efficiency Outlook and financial priorities for 2025 The key principles of our financial focus remain largely unchanged. We have a resilient business model that is designed to mitigate the impact of uncontrollable adverse events and maximise exposure to the upside. Ultimately, we seek to build a business that generates resilient, diverse and predictable cash flows that support resumption of distributions to shareholders. Full report here. (Source: Genel Energy)
Muscat Daily
11-03-2025
- Business
- Muscat Daily
OQEP, Genel Energy to develop Block 54 in Oman
By OUR CORRESPONDENT Muscat – Oman's Ministry of Energy and Minerals has entered into an Exploration and Production Sharing Agreement (EPSA) with OQ Exploration and Production (OQEP) and Genel Energy to develop Concession Block 54 in the sultanate. Block 54, known as the 'Karawan Concession', spans an area of 5,632 sqkm in Al Wusta Governorate. The agreement was signed by H E Eng Salim Nasser al Aufi, Minister of Energy and Minerals, Ahmed al Azkawi, CEO of OQEP, and Paul Weir, CEO of Genel Energy. Under the terms of the agreement, OQEP will hold a 60% operating interest in Block 54, while Genel Energy will retain the remaining 40% as a non-operating partner. The initial phase of the agreement, lasting three years, will involve investments of up to $25mn. This will include the execution of 3D seismic surveys, the drilling of exploration wells, and the re-evaluation of existing wells. The agreement will come into effect upon the promulgation of a Royal Decree ratifying its terms. H E Aufi said, 'The execution of this agreement marks a pivotal step in Oman's efforts to enhance hydrocarbon exploration and development. Through the expansion of exploration activities in concession areas, in collaboration with OQEP and Genel Energy, we reaffirm our steadfast commitment to increasing hydrocarbon reserves and ensuring sustained production. This initiative reinforces Oman's appeal as a prime investment hub for the energy sector, underpinned by a competitive environment that offers unparalleled opportunities for leading international companies.' He added, 'The development of Block 54 is a testament to our ambitious strategy to explore new frontiers and optimise the use of our natural resources, building upon OQEP's proven track record, notably exemplified by the substantial production growth in the Bisat field. We are confident that this agreement will deliver tangible outcomes, sustaining oil and gas production and making a significant contribution to the national economy.' Azkawi said, 'With the signing of EPSA for Block 54, OQEP demonstrates its unwavering commitment to leveraging our substantial expertise to drive further growth. We are delighted to collaborate with Genel Energy. This partnership solidifies OQEP's achievements and integral contributions to Oman's upstream sector. The incorporation of Block 54 as our fourth operated asset, in partnership with a leading international player, validates OQEP's robust operational capabilities. We extend our sincere appreciation to the Ministry of Energy and Minerals for this opportunity and their trust in OQEP, and we are eager to foster a successful and enduring partnership with Genel Energy.' Paul Weir said, 'We identified Oman some time ago as a preferred jurisdiction for geographical diversification, with its flawless track record and the significant steps it has taken in recent years to set its oil and gas sector up for an exciting future. It is therefore the ideal country for Genel to begin its strategic diversification, expand its portfolio and invest capital. We are delighted to be partnering with OQEP and the Ministry of Energy and Minerals on this exciting opportunity and look forward to working together to unlock and expand this contingent resource.' 'We see this entry as an important first step towards achieving our strategic goal of diversification, establishing a significant and profitable presence in Oman, and diversifying our cash generation,' he added.
Observer
11-03-2025
- Business
- Observer
Oman inks EPSA pact for Block 54 with OQEP, Genel Energy
Muscat: The Ministry of Energy and Minerals has entered into an Exploration and Production Sharing Agreement (EPSA) with OQEP and Genel Energy to develop Block 54 (also known as the Karawan Concession', spanning an area of 5,632 km2 in Al Wusta Governorate. The agreement was signed by Eng Salim Nasser Al Aufi, Minister of Energy and Minerals, Ahmed al Azkawi, CEO of OQEP, and Paul Weir, CEO of Genel Energy. Pursuant to the agreement, OQEP shall maintain a 60 per cent operating interest, while Genel Energy shall retain the remaining 40 per cent as a non-operating partner. The initial phase of the agreement, spanning three years, will involve investments of up to $25 million, which include the execution of 3D seismic surveys, drilling of exploration wells, and the re-evaluation of existing wells. The agreement shall enter into force upon the promulgation of a Royal Decree ratifying its terms. On this occasion, Al Aufi stated: "The execution of this agreement signifies a pivotal step in the Sultanate of Oman's endeavor to bolster hydrocarbon exploration and development. Through the expansion of exploration activities in concession areas, in collaboration with OQEP and Genel Energy, we reaffirm our steadfast dedication to increasing hydrocarbon reserves and ensuring sustained production. This initiative reinforces Oman's attractiveness as a prime investment hub for the energy sector, underpinned by a competitive environment that presents unparalleled opportunities for leading international companies. The development of Block 54 is a testament to our ambitious strategy to explore new frontiers and optimize the utilization of our natural resources, building upon OQEP's proven track record, notably exemplified by the substantial production growth in the Bisat field. We are confident that this agreement will deliver tangible outcomes, sustaining oil and gas production and significantly contributing to the national economy." Ahmed al Azkawi, CEO of OQEP, added: "With the signing of the Exploration and Production Sharing Agreement for Block 54, OQEP demonstrates its unwavering commitment to leveraging our substantial expertise to drive further growth. We are delighted to collaborate with Genel Energy, a distinguished international company. This partnership solidifies OQEP's achievements and integral contributions to Oman's upstream sector. The incorporation of Block 54 as our fourth operated asset, in partnership with a leading international player, validates OQEP's robust operational capabilities. We extend our profound appreciation to the Ministry of Energy and Minerals for this opportunity and their trust in OQEP, and we are keen to cultivate a successful and enduring partnership with Genel Energy.' Commenting on the agreement, Paul Weir, CEO of Genel Energy, stated: "We identified Oman some time ago as a preferred jurisdiction for geographical diversification, with its flawless track record and the significant steps it has taken in recent years to set its oil and gas sector up for an exciting future. It is therefore the ideal country for Genel to begin its strategic diversification, expand its portfolio and invest capital. We are delighted to be partnering with OQEP and the Ministry of Energy and Minerals of the Sultanate of Oman on this exciting opportunity and look forward to working together to unlock and expand this contingent resource. We see this entry as an important first step towards achieving our strategic goal of diversification, establishing a significant and profitable footprint in Oman, and diversifying our cash generation."
Zawya
11-03-2025
- Business
- Zawya
Oman: Deal signed for exploration and production in Area 54
MUSCAT: The Ministry of Energy and Minerals has entered into an Exploration and Production Sharing Agreement with OQEP and Genel Energy to develop Concession Area 54, known as the 'Karawan Concession,' spanning an area of 5,632 square km in Al Wusta Governorate. The agreement was signed by Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, Ahmed al Azkawi, CEO of OQEP, and Paul Weir, CEO of Genel Energy. Pursuant to the agreement, OQEP shall maintain a 60 per cent operating interest, while Genel Energy shall retain the remaining 40 per cent as a non-operating partner. The initial phase of the agreement, spanning three years, will involve investments of up to $25 million, which include the execution of 3D seismic surveys, drilling of exploration wells, and the re-evaluation of existing wells. The agreement shall enter into force upon the promulgation of a Royal Decree ratifying its terms. Speaking on this occasion, Al Aufi said: "The execution of this agreement signifies a pivotal step in the Sultanate of Oman's endeavour to bolster hydrocarbon exploration and development. Through the expansion of exploration activities in concession areas, in collaboration with OQEP and Genel Energy, we reaffirm our steadfast dedication to increasing hydrocarbon reserves and ensuring sustained production. This initiative reinforces Oman's attractiveness as a prime investment hub for the energy sector, underpinned by a competitive environment that presents unparalleled opportunities for leading international companies. "The development of Area 54 is a testament to our ambitious strategy to explore new frontiers and optimise the utilisation of our natural resources, building upon OQEP's proven track record, notably exemplified by the substantial production growth in the Bisat field. We are confident that this agreement will deliver tangible outcomes, sustaining oil and gas production and significantly contributing to the national economy." Commenting on this, Ahmed al Azkawi said: "With the signing of the Exploration and Production Sharing Agreement for Area 54, OQEP demonstrates its unwavering commitment to leveraging our substantial expertise to drive further growth. We are delighted to collaborate with Genel Energy, a distinguished international company. This partnership solidifies OQEP's achievements and integral contributions to Oman's upstream sector. The incorporation of Area 54 as our fourth operated asset, in partnership with a leading international player, validates OQEP's robust operational capabilities. We extend our profound appreciation to the Ministry of Energy and Minerals for this opportunity and their trust in OQEP, and we are keen to cultivate a successful and enduring partnership with Genel Energy." Commenting on the agreement, Paul Weir said: "We identified Oman some time ago as a preferred jurisdiction for geographical diversification, with its flawless track record and the significant steps it has taken in recent years to set its oil and gas sector up for an exciting future. It is therefore the ideal country for Genel to begin its strategic diversification, expand its portfolio and invest capital. We are delighted to be partnering with OQEP and the Ministry of Energy and Minerals of the Sultanate of Oman on this exciting opportunity and look forward to working together to unlock and expand this contingent resource. We see this entry as an important first step towards achieving our strategic goal of diversification, establishing a significant and profitable footprint in Oman, and diversifying our cash generation." 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
