Genel Energy

From Oil4All
Jump to: navigation, search
Type Public Limited Company
Traded as LSE:GENL
Founded 2011
Headquarters Ankara, Turkey
Key People Tony Hayward (CEO), Mehmet Sepil (President)[1]
Revenue US $24 million (2011)[2]
Net Income US $2.6 million[3]
Total Assets US $4 billion (end 2011)[4]
Total Equity US $3.84 billion (end 2011)[5]
Employees over 500 (2011)[6]
Website www.genelenergy.com

Global Snapshot

Genel's global producing assets (dark blue) and exploration assets (lighter blue). Click to go to fully navigable map.

Genel Energy plc is incorporated in Jersey and has offices in the UK, Turkey and Kurdistan. The company's primary assets are oil and gas licenses located in the Kurdistan region of Iraq. However the company also has exploration assets in Morocco, Malta, Cote d'Ivoire and semi-autonomous Somaliland.[7] Industry publication The Oil and Gas Year referred to the company as "the region's obvious consolidator" in reference to operations in the Kurdistan region.[8]

The company engages in exploration, appraisal, development and production of oil fields and has over 500 direct and seconded employees located in the Kurdistan region and Ankara.[9] Genel's CEO is Tony Hayward, former head of BP. The company's president Mehmet Sepil commented to the New York Times in 2012 that “Tony is running the whole company. I am helping him with the politics — to understand the region.”[10]

At the end of 2011 Genel held 412 million barrels of 2P reserves and had an average daily production over the year of 42,000 barrels per day (bpd).[11]

Corporate structure

Corporate Subsidiaries

Open-source database Open Corporates lists two holding companies registered in the Netherlands: Genel Energy Holding B.V. and Genel Energy Investments B.V.

The database also lists the following subsidiaries:

Key Individuals

(last updated 25 February 2013)

Senior Management

President Mehmet Sepil
Executive Director and CEO Anthony Bryan Hayward
Executive Director & CFO Julian Metherell
President, Turkey and KRI Murat Özgül
COO, Iraqi Kurdistan Levent Akça
John Hurst COO, Africa
Strategy and Business Development Charles Proctor
HSSE Jazira Akhmetov
General Counsel Stephen Mitchell
Head of Government & Public Affairs Pars Kutay
Deputy Chief Financial Officer Macit Merey
Head of Human Resources Martha Desmond
[13]

Other Directors

Independent Chairman Rodney Chase
Senior Independent Non-Executive Director Jim Leng
Independent Non-Executive Director Sir Graham Hearne
Independent Non-Executive Director George Rose
Independent Non-Executive Director Mehmet Öğütçü
Non-Executive Director Nathaniel Rothschild
Non-Executive Director Gulsun Nazli Karamehmet Williams
Independent Non-Executive Director Chakib Sbiti
Non-Executive Director Murat Yazici
[14]

History of ownership

Genel was formed following the merger of investment vehicle Vallares PLC and Genel Energy International Limited in November 2011.[15]

The founders initially invested a total of £100 million (approx. US $151 million) in Vallares shares when the company floated in June, with £20 million (US $30.2 million) of this initial investment being in founder shares.]

http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/8900455/Nathaniel-Rothschilds-180m-oil-windfall.html

Vallares' ordinary shares were admitted to trading on the London Stock Exchange on the 22 June 2011, resulting in gross proceeds of approximately 1,328 million GBP (approx. US $2,008 million). Following the review of a number of acquisition targets, Vallares agreed on the 7 September 2011 to the acquisition of the entire issued share capital of Genel Energy for approximately US $2.1 billion. The Directors believed that the acquisition would provide the following benefits to stakeholders, among others, according the the prospectus issued in 2011:

  • the opportunity to maximise the potential of the Kurdistan region, especially the Taq Taq and Tawke fields.
  • competitive entry costs of US$ 1.5/bbl of net unranked reserves and resources, or US $5.9/bbl of net 2P reserves.
  • significant upside exploration potential, particularly the Ber Bahr and Dohuk exploration projects.
  • exposure to the Kurdistan region, one of the "last great frontiers in oil and gas", with high discovery rates of greater than 70 percent, low Finding and Development (F&D) costs and proximity to markets, and a track record of stability and security.
  • access to capital with word-class management team and both industry and local relationships.
  • a share transaction that left the Company with approximately US $1.9 billion (£1.2 billion) of the proceeds raised in the Vallares IPO.

On completion, Vallares plc was renamed Genel Energy plc.[16]

Share-based payments

On the 2 June 2011, within Genel's 'Share Matching Award', the four Independent Non-Executive Directors of the Company at the time were granted an option to purchase a maximum of 3 shares at par value of 0.10 GBP for each share obtained on Placing Admission. The participation in the placement by the Independent Non-Executive Directors was limited to a maximum of 90,000 shares for the Chairman and, 60,000 shares for the other Independent Non-Executive Directors.

The Directors’ options are divided into two tranches, the first totalling 180,000 options and the second 90,000. http://www.genelenergy.com/media/12216/prospectus.pdf

In addition the founders of the company were issued 'Founder shares', as reward for their initial capital commitment to the company, and 'Founder Securities', which entitle the founders to a share of the upside in company value once the following performance conditions have been satisfied:

  • a compound rate of return of 8.5 percent on the share from initial value, or
  • an increase of 25 percent of the issue price.

If these conditions are satisfied, the Founders have the right to exchange their Founder Securities for ordinary shares in the company to the value of 15 percent of the increase in value. http://www.genelenergy.com/media/12216/prospectus.pdf

Genel from the outside

EITI Supporter Status

As of December 2011, Genel Energy was not a supporting company of the Extractive Industries Transparency Initiative (EITI).

UN Global Compact

As of December 2011, Genel Energy was not a participant in the UN Global Compact.

CSR Review

In their 2012 Annual Report the company notes that their Anglo-Turkish identity "will play a significant role in contributing to their success", and that all activities would be framed by an adherence to the highest levels of corporate governance and careful risk assessment and mitigation. (AR)

According to Genel's official website, the company policy on social responsibility comprises the following:

  • The HSSE (Health, Safety, Security and Environment) Management System defines the approach to managing these issues across all facilities and activities, providing practical guidance and procedures for all staff.
  • At new well sites, Genel's planning process incorporates the latest guidelines for waste management, pit location and construction, handling of water discharges and waste disposal. The location and size of new pits are selected so as to minimize disruption of the surface resources and to preserve the potential for reclamation of the site.
  • The company is committed to providing education, training and awareness activities for workers and representatives in order to make them conscious of their roles and responsibilities regarding the communities where they operate, and in order to raise and improve awareness of issues facing the local communities.[17]

External Coverage

  • Before founding Genel, CEO Tony Hayward was previously Chief Executive of BP, a post  he was force to leave following the oil spill in the Gulf of Mexico.[18] According to Iraq Oil Report, Hayward's multi-billion dollar acquisition of Genel Enerji represented "an enormous vote of confidence in Iraq's semi-autonomous Kurdistan region."[19] 
  • In January 2013, the UK's Indepent was one of the press sources that reported that the central Iraqi government was preparing to sue Genel Energy for "illegally" exporting some of the oil produced in the semi-autonomous region of Kurdistan, based on its own interpretation of the nation's Constitution.[20]

Global Operations by Country

Cote d'Ivoire

Main article: Genel Operations in Cote d'Ivoire

Iraq

Main article: Genel Operations in Iraq

Malta

Main article: Genel Operations in Malta


Morocco

Main article: Genel Operations in Morocco

Somaliland

Main article: Genel Operations in Somaliland

References

  1. Message" Genel Energy plc, retrieved 19 December 2011
  2. Annual Report and Accounts 2011", Genel Energy.
  3. Annual Report and Accounts 2011", Genel Energy.
  4. Annual Report and Accounts 2011", Genel Energy.
  5. Annual Report and Accounts 2011", Genel Energy.
  6. About Us" Genel Energy, 22 November 2011.
  7. About Us" Genel Energy plc, retrieved 21 February 2013.
  8. TOGY talks to Mehmet Sepil", The Oil and Gas Year, retrieved 25 February 2013.
  9. About Us" Genel Energy, 22 November 2011.
  10. Tony Hayward Gets His Life Back" New York Times, 1 September 2012.
  11. Annual Report and Accounts 2011", Genel Energy.
  12. Genel Energy", OpenCorporates, retrieved 25 February 2013.
  13. "Board and Management", Genel Energy, retrieved 25 February 2012.
  14. "Board and Management", Genel Energy, retrieved 25 February 2012.
  15. About Us", Genel Energy plc, retrieved 19 December 2011.
  16. 'Prospectus' prepared for FSA", Genel Energy, November 2011.
  17. Corporate Social Responsibilitiy" Genel Energy, retrieved 19 December 2011
  18. Tony Hayward moves into Kurdistan with Genel Energy as tensions rise" Telegraph, 17 November 2011
  19. Q&A: Genel Energy's Tony Hayward and Mehmet Sepil" Iraq Oil Report, 22 November 2011.
  20. Q&A: Iraq to sue Genel Energy over exports", Independent, 16 January 2013.