Highlights and strategy Political update KRI oil business KRI gas business Exploration Financials and guidance Summary and Q&A 3
HIGHLIGHTS KRI exports ramp-up Pipeline capacity in Turkey no longer a constraint currently 500,000 bopd to increase to 700,000 bopd by year-end 2014 Pipeline exports currently at c.300,000 bopd, expected to increase to 400,000 bopd…
STRATEGY Maintain the highest level of corporate governance Create value with the drill bit Manage our KRI business on a broadly cash flow neutral basis Maximise shareholder returns by monetising at all points in the…
Highlights and strategy Political update KRI oil business KRI gas business Exploration Financials and guidance Summary and Q&A 6
POLITICAL UPDATE KRI EMERGING AS A REGIONAL FORCE KRI safe and secure KRG consolidating power in expanded KRI with international support KRG has a prominent position in new Iraqi Government KRG on track to budget equilibrium…
KRI INDEPENDENT EXPORT ROUTE ESTABLISHED 3 month track record of pipe exports to Ceyhan Pipeline export capacity 500,000 bopd by end November, 700,000 bopd by early 2015 Storage capacity of 2.5 mmbbls available for KRI crude at…
REGIONAL PIPELINE INFRASTRUCTURE Tank Farm = 9.5 mmbbls capacity 40 Pipeline with 500,000 bopd of capacity, Allocated to KRI = 2.5 mmbbls capacity upgrade to 700,000 bopd by year-end 2014 Tawke field, 100,000 bopd of pipeline…
Highlights and strategy Political update KRI oil business KRI gas business Exploration Financials and guidance Summary and Q&A 11
LOW COST AND RESILIENT KRI OIL AND GAS BUSINESS Breakeven of non-producing and recently on-stream oil assets Low cost onshore oil and gas: 160 150 Marginal Taq Taq and Tawke life of field F&D costs < 3/bbl heavy oil 140 and deep…
TAQ TAQ UPDATE 9M 2014 average production c.97,000 bopd Taq Taq well locations: Plan View Wells 17 current producing wells with well production capacity of c.150,000 bopd First horizontal well TT-24 to spud in Q4 2014 One…
TAWKE UPDATE 9M 2014 average production of c.87,000 bopd Wells Tawke-25 and Tawke-26 (horizontal) recently completed, initially tested at up to 7,500 bopd and 5,000 bopd respectively New Tawke-28 well undergoing stimulation and…
Highlights and strategy Political update KRI oil business KRI gas business Exploration Financials and guidance Summary and Q&A 15
TRANSFORMATIONAL KRI GAS BUSINESS World-class resource 11tcf mean gas resources, 80 mmbbls mean liquid resources Material and growing domestic market opportunity 3-5 bcma of near-term domestic market demand from power plants and…
NEW DEAL A WIN-WIN FOR KRG AND GENEL New gas deal signed Detailed Gas term sheet signed, final PSC Amendment Agreement to be completed by year-end Miran and Bina Bawi to be combined under one PSC Genel to become sole Contractor at…
NEW DEAL GAS & CONDENSATES Structure New structure (gas/condensates) Miran and Bina Bawi combined under one PSC with one aggregate production target: 1,400 mmscfd raw gas from 2018 Raw Gas Genels responsibilities (development &…
NEW DEAL OIL Structure Miran and Bina Bawi combined under one PSC Responsibilities (development & operation) Contractor responsible for the development and operation of all oil resources Contractor entitlement 100% oil produced…
KRI GAS GAS / CONDENSATE DEVELOPMENT ASSUMPTIONS Miran Bina Bawi Mean raw gas 4.3tcf 7.1tcf Mean sales gas 3.5tcf 4.9tcf Mean condensate(1) 32mmbbls 13mmbbls Number of wells c.35 development wells c.35 development wells Average…
KRI GAS ROAD MAP TO MONETISATION 2013 2014 2015 2016 2017 2018 DOC HORIZTONTAL Miran EWT OIL WELL OIL PRODUCTION EARLY OIL DOC Bina Bawi OIL PRODUCTION EXPORT GAS/CONDENSATE FEED MW5 EXPORT GAS & EARLY DOMESTIC GAS &…
Highlights and strategy Political update KRI oil business KRI gas business Exploration Financials and guidance Summary and Q&A 23
EXPLORATION FOCUSED AND DISCIPLINED KRI Peshkabir exploration Chia Surkh appraisal New opportunities Africa Exit Malta No plans for further drilling offshore Angola Evaluate Morocco Ethiopia first well end 2015/early…
HORN OF AFRICA Somaliland Blocks SL-10B/13 & Odewayne Seismic acquisition in Q4 2015 aimed at unlocking Yemeni equivalent fairway Odewayne Block 50% Op Ethiopia Adigala Block Berbera Mesozoic prospectivity defined c.200km2…
Highlights and strategy Political update KRI oil business KRI gas business Exploration Financials and guidance Summary and Q&A 26
PRODUCTION AND SALES Net Genel production (kboepd) Net Genel revenues (m) 100 80 kboepd YTD Average: 66kboepd 60 40 600-700m(1) 20 100/bbl Jul-14 Jan-14 Jun-14 Aug-14 Sep-14 Feb-14 Mar-14…
BALANCE SHEET AND CAPITAL EXPENDITURE GUIDANCE 650m Strong balance sheet 564m Disciplined capital spend in KRI Focused and disciplined exploration 300-350m programme 229m Potential for cash return to shareholders…
TRANSITION FROM DOMESTIC MARKET SALES TO EXPORTS Increased profitability Genel working interest production (bopd) 75% of sales now benefitting from pipeline export netback 100,000 2014 Pipeline transportation cost 5-10/bbl 90,000…
Highlights and strategy Political update KRI oil business KRI gas business Exploration Financials and guidance Summary and Q&A 30
SUMMARY KRI remains safe and secure, KRG working closely with international community Politics Progress continues to be made following the formation of the new Iraqi Government Pipeline capacity in Turkey not a constraint 700,000 bopd…
Appendix 32
GENEL ENERGY KRI LICENSES Khurmala to Fishkhabour, 400,000 bopd capacity Taq Taq to Khurmala 150,000 bopd capacity 33
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