The KRG’s Ministry of Natural Resources intends to cancel the Bina Bawi and Miran contracts, according to a statement from Genel.
The two fields have large natural gas reserves. The Bina Bawi field holds an estimated 8.2 trillion cubic feet of natural gas and 37 million barrels of oil. Volume estimates at Miran are 6.6 trillion cubic feet of raw gas and 93 million barrels of oil and condensates.
“Genel believes that the KRG has no grounds for issuing its notices of intention to terminate,” the company stated, adding they had agreed in September 2019 to develop the fields and the KRG confirmed it would not cancel the contract while negotiations were ongoing.
Genel plans to dispute the termination and said it hopes the matter can be resolved quickly without turning to international arbitration.
The KRG has not immediately commented on the termination.
Genel Energy operates four fields in the Kurdistan Region – Taq Taq, Sarta, Tawke, and Peshkabir – with total reserves of some 117 million barrels of oil.
In July, Genel received $30.4 million from the KRG for oil sales in May 2021 and said it is still owed $141 million from 2019 and 2020.
