Genel Energy shares slide after losing arbitration hearing
By Josh White
Date: Tuesday 03 Dec 2024
(Sharecast News) - Shares in Genel Energy were sliding on Tuesday morning, after the London Court of International Arbitration ruled in favor of the Kurdistan Regional Government (KRG) late on Monday over the termination of the Bina Bawi and Miran production sharing contracts.
The London-listed firm said the KRG launched the arbitration in December 2021, seeking confirmation of its right to terminate the contracts.
In response, Genel argued that the terminations were the result of repudiatory breaches by the KRG, and filed a counterclaim for damages to recover losses associated with its rights to develop the fields.
The tribunal concluded that the KRG validly terminated both PSCs, and dismissed Genel's counterclaim.
Genel said the allocation of arbitration-related costs would be determined in subsequent rulings.
"We are very disappointed that the tribunal found against GEMBBL in this arbitration," said chairman David McManus.
"We will update the market once we have appropriately analysed the tribunal's award."
McManus said the company remained of the view that it was "left with no option" but to seek to defend its rights in the arbitration.
"Our internal team and external advisors have worked diligently since the case was commenced by the KRG in December 2021 and we thank our team for all that work."
At 0929 GMT, shares in Genel Energy were down 16% at 74p.
Reporting by Josh White for Sharecast.com.
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