4.3 tcf raw gas
oil and condensates
Along with Bina Bawi, the commercialisation of Genel’s major onshore, low-cost, gas resource will generate significant revenue and value for the people of the Kurdistan Region of Iraq.
The Miran field (Genel 75% working interest, operator) is a simple, large structure, well-defined on 3D seismic. The gas resources in the field are situated in Jurassic aged Butmah and Adaiyah reservoirs, which have delivered 20-25 (mmscfd) on test. Raw gas volumes in the Jurassic have been independently estimated at 2-7 tcf. In addition, the Company estimates up to 50 mmbbls of condensate from first stage separation.
The shallower Cretaceous Shiranish oil bearing reservoir is estimated to contain up to 60 mmbbls of 15 degree API oil, which has already been produced through an early production facility and which we plan to bring on-stream ahead of the gas resources in the field.
During the first half of 2015, Genel continued its negotiations with the KRG on the commercial framework for the development of the Miran and Bina Bawi fields. Detailed term sheets for the upstream and midstream elements of the KRI gas project were signed in early H2 2015, replacing the original documentation announced in November 2014. The revised structure delivers complete alignment along the value chain, from the KRI-Turkey Gas Sales Agreement through the midstream to the upstream, and helps the KRG manage its obligations and de-risks the wider project. Genel expects to convert these term sheets into fully termed documents during Q2 2016.
In September 2015, the Company acquired OMV’s 36% operated stake in the Bina Bawi field. Genel now has an 80% operated working interest in Bina Bawi. The consideration comprised an upfront payment of $5 million. A contingent payment of $70 million is payable once gas production exceeds agreed threshold volumes from the Miran and Bina Bawi fields. A further contingent payment of $75 million is payable two years after the date of the second payment. In consideration of the KRG agreeing to the transfer of OMV's stake in the Bina Bawi field, on completion Genel offset $25 million against monies owed by the KRG to Genel in respect of past expenses incurred on the Miran field.