Investors' Room :: GENEL; Tony Hayward former BP,back in the oil business. - MoneyAM - Free Share Prices, Stock Quotes, Charts, News, Level2

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niceonecyril - 26 Dec 2011 18:34

Chart.aspx?Provider=EODIntra&Code=GENL&S

niceonecyril - 18 Jan 2012 09:51 - 13 of 360

By Ben Lando of Iraq Oil Report
Published January 18, 2012

Genel Energy announced this week that it is taking over the entire foreign stake in Iraqi Kurdistan's Chia Surkh block, becoming one of the biggest oil operators in the north – and also inaugurating a new phase of oil development for the semi-autonomous region.

Until recently, Kurdistan has focused on signing companies to dozens of exploration blocks; now, with nearly all the open space doled out, the region is likely entering a season of consolidations and acquisitions, and Genel has emerged as its most bullish backer.

A British-Turkish mid-level player led by ex-BP chief Tony Hayward, following a November merger between Hayward's Vallares and the Turkish firm Genel Enerji, Genel is armed with a $1.9 billion buyer's fund. It's betting that the Kurdistan Regional Government (KRG) can overcome a slew of challenges and continue to climb a steep path of development that will turn the company's early investment in an up-and-coming oil sector into major holdings.

"For what we consider a very good price," Hayward said in a statement, "they give us 80 per cent of a high-quality asset in one of the last great hydrocarbon provinces accessible to international investors."

Investment in Kurdistan does not come without big risks, however. The KRG is still locked in a dispute with the central government, which claims sole authority to sign oil contracts and has called the Kurdish contracts illegal.

The central government controls both the flow of oil through export pipelines and the flow of revenue from oil sales, so the commercial success of Kurdistan's contracts depends on the uncertain prospect of cooperation between leaders in Baghdad and the Kurdish capital of Erbil.

Despite that friction, the KRG has set a production goal of 1 million barrels per day (bpd) within five years, and is on track to hit more than 310,000 bpd by the end of the year, up from about 180,000 bpd now. That number varies along with different assessments of nationwide infrastructure and political issues; according to a new report by Canadian oil firm Western Zagros, the KRG has production capacity of 254,000 bpd now, and will hit 419,000 bpd capacity by the end of this year with seven fields producing. Western Zagros's Sarqala block has 5,000 bpd capacity.

Genel will have a hand in much of that. Its largest project in Kurdistan so far is the Taq Taq oil field, which Genel is developing in a joint venture with Sinopec's Addax under a contract first signed in 2002, and from which at least 75,000 bpd are now being produced. That crude is both sold on the local market and trucked to entry points on Iraq's northern export pipeline to Turkey, at Khormala in Erbil or Feyshkhabour in northern Dohuk province.

Pending approval by the KRG and the respective companies, Genel will raise its stake in Chia Surkh from 20 to 80 percent by buying out two companies – taking the Canadian company Longford Energy's 40 percent share, for $68 million ($26 million of which will go to pay bills due to KRG), and buying the Turkish firm Petoil Petroleum's 20 percent, for $26 million. The KRG will retain 20 percent stake.

Much is left to be explored in Chia Surkh. Genel, in a statement, said there are estimates of 300 million barrels of oil equivalent, though that claim isn't qualified yet. “Operations are already in train for an exploration well this year," Hayward said in a statement. "We anticipate further drilling over the next two years as we conduct a comprehensive exploration program to fully evaluate the block.”

Genel also has a junior stake in Norwegian DNO's Tawke field project, which averages around 70,000 bpd of production now but is targeting at least 100,000 bpd this year.

And Genel is the operator of the Ber Bahr block, and junior partners in DNO's Dohuk block and Heritage's Miran block.

Despite the exuberance of investors, one key issue has slowed development in the KRG: payments to contractors.

In January 2011, Iraqi Prime Minister Nouri al-Maliki and KRG Prime Minister Barham Saleh (who is likely leaving office within days or weeks) agreed that the KRG would begin exports averaging 100,000 bpd and receive 50 percent of those exports' revenues to pay the back costs of the companies. These payments would supplement the 17 percent of state revenue already distributed to the regional government.

Under this agreement, the central government has transferred some funds for contractors' costs. But leaders in Baghdad say it's up to the KRG, as signatory to the contracts, to pay the oil companies any profits.

Iraq as a whole averaged 2.7 million bpd in production last month and is looking to hit 3.5 million bpd this year as new export systems are brought online and KRG output increases.

The proposed 2012 budget has KRG fields increasing to an average 175,000 bpd of exports, but KRG officials have told Iraq Oil Report that new drafts of the law have removed the 50 percent redistribution clause, which KRG officials will not agree to.

These disputes are playing out amidst an all-out breakdown in the political scene. The fault lines divide mostly by sectarian identity, between Maliki's Shiiite-led government and his uneasy coalition partners in the Sunni-backed Iraqiya bloc.

Iraqi politics are also complicated by competing ethnic interests. Kurdish officials say the Arab-majority central government has reneged on separate deals to move forward a draft oil law and to begin the process of resolving disputes over tracts of land claimed by Arabs, Kurds and Turkomen. (The Chia Surkh block falls at least partly within the disputed territories but is currently completely administered by the KRG.)

Despite the political uncertainty, investors have become even more excited about Kurdistan since October, when ExxonMobil – which has a massive deal with the central government for Basra's West Qurna 1 oil field – signed production sharing contracts for six Kurdish blocks.

The central government has thus far blacklisted any KRG-signed contractor from deals in the rest of Iraq, but Exxon's move into Kurdistan represented the company's bet that Baghdad's hard-line policy is unsustainable. The resulting controversy has certainly given both Baghdad and Erbil an incentive to reconcile Iraq's two oil sectors.

Moreover, Exxon's decision to sign with Kurdistan underscored not only confidence in the region but also the urgency of the opportunities there. If the world's most profitable company is investing in Kurdistan – and if the available blocks are dwindling – then it stands to reason that companies might rush to land deals before there's nothing left.

On the strength of such speculation, rumors have been swirling. Gulf Keystone seems a likely target for an acquisition, and any number of big names could make the move – ExxonMobil, Chevron, ConocoPhillips, Eni, Total, Gazprom, TNK-BP, TPAO, Lukoil, KNOC, all have been mentioned by industry insiders and spectators. Such companies might also take up the handful of remaining unsigned blocks, buy into other currently signed blocks, or takeover smaller companies altogether.

"There is intense interest right now and multiple companies are looking to enter the market," said one expert with extensive knowledge of the KRG energy sector. "Through 2012 you're going to see additional consolidation and that's highlighted by the deal announced this week by Genel."

Industry publication MEES is suggesting Norway's Statoil wants out of its junior stake in the West Qurna II project (Lukoil operated) to move up north. Platts, another industry news and data outlet, is suggesting China's Sinopec is looking to expand its presence.

Like Longford – which was slowing down its administrative operations for months before the Genel purchase – Canada's Shamaran is responding to poor exploration in its Pulkhana and Arbat blocks by suspending its work and "examining options to re-focus."

"We've had players leave the region," said the industry insider. "I think that's because those types of companies didn't have the wherewithal to fully develop the assets here."

Anticipating boom times, Kurdistan is moving forward with an infrastructure expansion to match the eventual mainstreaming of its industry.

The Taq Taq Operating Co. (TTOPCO – the Genel/Addax consortium) is expected to award an engineering, procurement and construction contract by the end of first quarter 2012 for an estimated $400 million pipeline from the field to Feyshkhabour, allowing Taq Taq to reach at least 200,000 bpd in two years.

Bermuda-registered Gulf Keystone Petroleum is exploring financing of the pipeline to send crude from Shaikan, one of three blocks the company is invested in. That field, which is generating near 5,000 bpd now while well testing and development continue, is pegged for a 440,000 bpd capacity.

Not all of that crude will be sent abroad, as the KRG advances its domestic refining ambitions. The Erbil refinery, operated by the Kar Group, is expanding from 40,000 bpd capacity to 80,000 bpd, at least 20,000 bpd of which is expected to be commissioned by the end of the year, said Najim Hadi, director general of the refinery.

The Qaiwan Group, also a Kurdish company, is expanding the 20,000 bpd capacity Bazian refinery in Sulaimaniya to 35,000 bpd, and installing a gasoline train for unleaded gasoline.

The region's topping plants and black-market refineries have at least a 65,000 bpd refining capacity, though the government has cracked down on those of late.

The KRG plan is to reach 300,000 bpd refining capacity in five years.

niceonecyril - 18 Jan 2012 09:53 - 14 of 360

On the strength of such speculation, rumors have been swirling. Gulf Keystone seems a likely target for an acquisition, and any number of big names could make the move – ExxonMobil, Chevron, ConocoPhillips, Eni, Total, Gazprom, TNK-BP, TPAO, Lukoil, KNOC, all have been mentioned by industry insiders and spectators. Such companies might also take up the handful of remaining unsigned blocks, buy into other currently signed blocks, or takeover smaller companies altogether.

aldwickk - 18 Jan 2012 10:59 - 15 of 360

No mention of Afren as a target ?

Balerboy - 18 Jan 2012 11:04 - 16 of 360

That would be soooo good.,.

niceonecyril - 27 Jan 2012 18:27 - 17 of 360

Look who's accumilating?

http://uk.advfn.com/news/UKREG/2012/article/50927894

niceonecyril - 06 Feb 2012 07:11 - 18 of 360

RNS Number : 8198W
Genel Energy PLC
06 February 2012

Genel Energy plc

Capital Markets Day

Genel Energy plc will be hosting a Capital Markets Day presentation in London on the afternoon of Thursday 23 February 2012.

Tony Hayward, Chief Executive Officer of Genel Energy will deliver a presentation on Group strategy and set out milestones for 2012. There will also be operational, pipeline and exploration updates following the first 90 days since the Genel Energy listing. Other members of the Group's senior management will also be present.

A live webcast will be available on our website (www.genelenergy.com) on the day, and will be available for download with the presentation from the day shortly afterwards.

niceonecyril - 07 Feb 2012 18:40 - 19 of 360

Photobucket
http://thesharehub.com/?p=5453

Not long to wait for BB's news,lets hopeit's postive?

dreamcatcher - 26 Feb 2012 13:11 - 20 of 360

..Questor share tip: Hayward's Genel is a speculative buy

By Garry White | Telegraph – 1 hour 47 minutes ago

Turkish oil group Genel Enerji, which was privately owned by businessmen Mehmet Emin Karamehmet and Mehmet Sepil, reversed into Vallares last year.

Vallares was a cash shell floated by financier Nathaniel Rothschild, Julian Metherell, an ex-head of Goldman Sachs (NYSE: GS - news) 's UK's investment-banking division, and Tony Hayward, the former chief executive of BP. The aim was to buy global oil assets. Vallares is the sister company of Vallar (Frankfurt: A1C189 - news) , now known as Bumi, which was set up to invest in the mining sector. Each of the "founders" of Vallares was awarded generous founder share packages worth millions of pounds.

Genel is the largest oil producer in the semiautonomous Kurdish region of Iraq. There is still no agreement on an Oil Law that will allow revenue-sharing with the Iraqi central authorities. This means that only limited oil can be exported into higher-priced foreign markets. Genel sells most of its oil in Kurdistan.

CORPORATE GOVERNANCE

Foreign companies with large stakes owned by individuals readily prompt corporate governance concerns when they come to London.

Genel has addressed this by getting together the "Manchester City" of boards - with the majority of its directors independent and most of them City heavyweights.

These independent directors include grandees such as independent chairman Rodney Chase, who has served on the boards of Petrofac (EUREX: P2FF.EX - news) and BP; senior non-exec Jim Leng, the ex-chairman of Corus; George Rose, the former finance director of BAE Systems (LSE: BA.L - news) , and Sir Graham Hearne, former chairman of Enterprise Oil and current chairman of Catlin Group (LSE: CGL.L - news) .

Also, the founders of Genel, Mr Karamehmet and Mr Sepil, have together had their voting rights limited to less than 30pc. Their shares are locked in for two years and Genel has first right of refusal to buy the shares on their sale, so it can dispose of the stake in an orderly manner.

DIVERSIFICATION IS THE NEXT STEP

The shares have moved lower partly because more than half of the company's market capitalisation - $1.9bn (£1.2bn) - remains in cash. As any saver knows, cash is currently a lowyielding asset.

Last week, management made it clear that the Kurdish operations will be self-financing. Cash generated there will be used for the company's exploration programme in the region, which aims to book more oil reserves. Increasing reserves will, in turn, increase the value of the Kurdish assets - and the valuation of Genel. Wells drilled in the region have an exceptional 70pc success rate.

Genel's oilfields, which include Taq Taq and Tawke, should generate operating profits of $250m to $300m this year, management says.

Genel therefore does not plan to spend any of its $1.9bn cash pile in Kurdistan. It argued that valuations are too high and instead it is looking towards the wider Middle East and Africa for assets .

WHY A SPECULATIVE BUY?

There is no doubt that Genel's management and assets are high-quality.

Mr Hayward is a geologist who knows his "rocks" and Mr Sepil is a deal maker with lots of contacts in the key Middle Eastern regions.

Mr Hayward said on Thursday that, although the Middle East region was in flux, new relationships were being developed and the Turkish origins of the business could help in contact building. Genel's headquarters is in Ankara.

However, Kurdistan still has unresolved issues, especially the Oil Law, and its neighbours, Syria and Iran, are international pariah states. The Kurds' relationship with Turkey can also be strained.

There is no guarantee that management can find the right asset at the right price, which will continue to be a drag on the share price.

However, everything is in place for the company to start heading towards its ambition of being a major global independent oil company.

..

niceonecyril - 01 Mar 2012 07:44 - 21 of 360

http://www.investegate.co.uk/Article.aspx?id=201203010700484447Y

Genel Energy plc

1 March 2012

Update on Chia Surkh

On 16 January 2012, Genel Energy plc ("Genel Energy") announced that it had entered into transactions with Forbes & Manhattan (Kurdistan) Inc. (a subsidiary of Longford Energy Inc.) ("F&M") and Petoil Petroleum to increase Genel Energy's interest in the Chia Surkh block in the Kurdistan Region of Iraq from 20 per cent to 80 per cent and to become Operator of that block (the "Transactions").

The announcement confirmed that the Transactions are conditional on the receipt of various consents, approvals and assurances, including from the Kurdistan Regional Government. The application before the Kurdistan Regional Government Oil and Gas Council remains pending, and all parties continue to work with the Government to secure final approval for the Transactions.

Genel Energy will update the market in due course when it has greater visibility on timing for completion of the Transactions.

niceonecyril - 05 Mar 2012 09:33 - 22 of 360

Genel Energy plc

5 March 2012

Genel Energy plc

Drilling Update - Miran West-3 well

Genel Energy plc ("Genel Energy") notes that Heritage Oil Plc ("Heritage"), as operator of the Miran Block in the Kurdistan Region of Iraq, has today issued the following press release:

"Heritage has completed well testing and wireline log evaluation of the Lower Cretaceous reservoir in the Miran West-3 well and is currently at a depth of 2,910 metres.

Testing in the Lower Cretaceous formation resulted in no measurable flow of hydrocarbons to surface due to the lack of an extensive connected fracture network at this location. The results from detailed wireline log interpretation, observations whilst drilling and gas recovered at surface confirm that the Lower Cretaceous reservoir formation is gas bearing. Detailed work is being undertaken on the recently processed 3D seismic and offset well data to establish the areas of effective reservoir for this formation.

Below the Lower Cretaceous reservoir the well encountered a high pressure interval as well as a loss of circulation which resulted in the need to sidetrack the well. This interval has now successfully been drilled and the well is currently at a depth of 2,910 metres and being logged.

Further drilling will appraise the Jurassic reservoir intervals which were discovered by the Miran West-2 well. A number of tests are planned and drilling is expected to be completed within the next couple of months.

A second rig to drill the Miran East-1 well is on location and expected to commence drilling shortly."

Tony Hayward, chief executive of Genel Energy said:

"The Miran 3 well has confirmed the presence of gas in place at this location on the Miran structure - integration of the well results and the recently completed 3D seismic survey will provide a better estimate of the potential recoverable gas reserves and assist in development planning."

niceonecyril - 06 Mar 2012 12:49 - 23 of 360

specifically - Vallares, the investment vehicle run by the former BP chief exec-utive Tony Hayward, bought Genel Energy, the Kurdish-focused explorer, in September, while the AIMlisted Gulf Keystone’s exploration success in the region is set to catapult it into the FTSE 100. But the HSBC analysts warned that political pitfalls lay ahead, as politicians in Baghdad have declared oil explorers’ contracts in Kurdish Iraq illegal, because they were signed in the absence of a formal oil law

niceonecyril - 08 Mar 2012 08:24 - 24 of 360

8 March 2012

Genel Energy plc

Commencement of drilling operations on Miran East-1 exploration well

Genel Energy plc ("Genel Energy") notes that Heritage Oil Plc, as operator of the Miran Block in the Kurdistan Region of Iraq, has today issued the following press release:

"Drilling of the Miran East-1 exploration well has commenced with an estimated target depth of c.4,000 metres. This is the first well to be drilled on the highly prospective eastern structure, which has an area of approximately 130 square kilometres. The well is targeting exploration potential within the Cretaceous and Jurassic reservoir intervals of the eastern structure, contiguous with the hydrocarbon bearing Miran West structure. The well design utilises recently acquired 3D seismic data and the enhanced understanding of the structural configuration within the Miran Field that this has provided.

Drilling of Miran East-1 is expected to take approximately seven months with multiple intervals to be evaluated and tested as the well is drilled."

Tony Hayward, chief executive of Genel Energy said:

"The Miran East-1 exploration well is being drilled on a separate structure from the existing Miran discovery and has the potential to add significantly to our resources. The spudding represents the latest well in the extensive exploration programme that we are undertaking over the next 12 months in the Kurdistan Region of Iraq, aimed at adding some 700 million barrels to our resource base."

niceonecyril - 13 Mar 2012 09:26 - 25 of 360

RNS Number : 1969Z

Genel Energy PLC

12 March 2012

Genel Energy plc

13 March 2012

Genel Energy plc

Update on analyst meeting for Preliminary Results

As previously announced Genel Energy plc will be announcing its preliminary results for the period ending 31 December 2011 on Tuesday 20 March 2012.

Please note that a conference call for analysts and investors will be held at 11am on the day, replacing the meeting at the offices of Goldman Sachs announced on 22 December.

niceonecyril - 20 Mar 2012 07:35 - 26 of 360

http://www.investegate.co.uk/Article.aspx?id=201203200700206495Z

niceonecyril - 20 Mar 2012 14:20 - 27 of 360

http://dalesmann.com/1waving-from-advfn/

http://newsworthy.yolasite.com/genel-in-pipeline-talks-to-boost-kurdish-output.php

niceonecyril - 21 Mar 2012 07:16 - 28 of 360

Successful completion and testing of Tawke-16 well

Genel Energy plc ("Genel Energy") notes that DNO International ASA ("DNO"), as operator of the Tawke Field in the Kurdistan Region of Iraq, has today issued the following press release:

"DNO announced today that its just-completed Tawke-16 well in the Kurdistan Region of Iraq flowed at a cumulative rate in excess of 25,000 barrels per day of 26-27º API gravity oil from multiple, independently tested zones. The Company expects to connect the well to existing pipeline and processing facilities by mid-April, boosting the Tawke field's deliverability.

The Tawke-16 well was designed to probe and appraise the undrilled northern flank of the Tawke field. It reached total depth of 2,369 metres and encountered over 350 metres of gross continuous oil column in the Cretaceous interval of the Tawke field. The well was spud in late December 2011 and the cost to drill, complete and test the well was under $7 million.

DNO International will continue to actively develop the Tawke field, with the goal of establishing

100,000 barrels per day of sustainable deliverability before year end. Tawke-16 is the first of four wells targeting the Cretaceous interval that the Company plans to drill in 2012, while a fifth, Tawke Deep, will also penetrate the deeper Jurassic and Triassic intervals in the field later this year."

Bijan Mossavar-Rahmani, DNO's Executive Chairman said:

"The Tawke-16 test exhibited exceptional flow characteristics and confirmed the reservoir quality and productivity of the northern extension of the Tawke field. In fact, based on these test results, Tawke-16 likely is the most prolific well drilled so far in this field by the Company."

Tony Hayward, chief executive of Genel Energy said:

"This is a very encouraging result. The successful completion of testing at Tawke-16 has further substantiated the quality of the Tawke field and the potential resource upside that we believe to exist. Genel Energy remains committed to increasing the size and the scale of our existing business in the Kurdistan Region and this result, along with the extensive exploration programme of 7 high impact wells over the next 18 months, is a good step to achieving that aim."

HARRYCAT - 17 Jun 2012 11:12 - 29 of 360

Quite a poor performer this stock, but wonder if it may be worth watching once the Iraq/Kurd issue is resolved.

Shortie - 06 Jul 2012 11:12 - 30 of 360

Been watching this, think I might jump onboard right about now.

Shortie - 18 Jul 2012 12:38 - 31 of 360

Thats me out for a small gain, would have liked to have stayed in longer however future margins not so nice on this one!

Shortie - 18 Jul 2012 12:41 - 32 of 360

From the GKP thread

niceonecyril - 15 Jul 2012 21:31 - 3361 of 3368
Chevron apparently confirmed (almost - next week?) in Kurdistan - with Total apparently to follow with Western Zagros (as per Noble Trader?)

Sunday times article - on subscription - copy below - interesting times ahead???

81339.ece

http://www.thesundaytimes.co.uk/sto/business/Industry/article1081339.ece

Oil giant’s Kurdish deal defies Iraq

Danny Fortson Published: 15 July 2012
Recommend (0) Comment (0) Print
CHEVRON is to become the latest oil giant to thumb its nose at Baghdad and buy into Kurdistan, the semi-autonomous region of Iraq locked in a protracted battle with the central government over oil rights.

The American company is in advanced talks to buy the rights to two exploration zones from Reliance Industries, the Indian conglomerate controlled by billionaire Mukesh Ambani.

The deal, thought to be worth at least $200m, could be announced this week.

It will be a boost for Tony Hayward, the former BP boss whose London-listed group, Genel Energy, is already the largest producer in the region.

Kurdistan has been at loggerheads with Baghdad since 2004, when it began inviting western groups in to look for oil. Baghdad said the exploration deals were illegal and threatened to blacklist any firm that dealt with the Kurds.

Companies found vast fields, however, drawing the attention of the world’s biggest producers. Exxon Mobil shocked Baghdad last year when it signed an agreement for half a dozen Kurdistan exploration blocks.

It is understood that Total, the French giant, is also in talks to buy a stake in fields owned by Western Zagros, a small independent listed in Canada. It is understood that at least part of the share would come from the Kurdish government, which has a large equity holding.

The rush of industry giants into the sector comes amid growing frustration with the bureaucracy and political in-fighting that has hampered development of Iraq’s giant fields in the south.

Genel does not plan to tie its future entirely to the region. The company is scouring Africa for exploration opportunities and plans to unveil a portfolio of new assets within the next couple of months.

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GENEL; Tony Hayward former BP,back in the oil business. (GENL)