In a statement, Genel Energy said it had received notice from the KRG ministry of natural resources of its intention to terminate the Bina Bawi and Miran PSCs.

The company further said it sees “no ground” for such a move and that it would “take steps to protect its rights”.

Bina Bawi and Miran contain an estimated 14.8 trillion cubic feet of raw gas, which Genel planned to export to a growing market in Turkey, according to Bloomberg.

They also hold 130 million barrels of oil and condensate resources, Bloomberg said.

“Genel wishes to continue operations under the PSCs and to work with the KRG on the development of these fields,” the company said.

“However, Genel will take steps to protect its rights under the PSCs and, if necessary, seek compensation, including for its material investment,” it added.

“As a first step, Genel intends to issue notice of dispute to the KRG under each PSC, contesting the right of the KRG to issue any such termination notice and, in doing so, trigger an obligation to hold good faith negotiations to resolve this matter promptly and without the need for either party to refer to the matter to international arbitration.”

The company is already contending with slower repayments from the KRG for past oil sales after the authorities made changes to the schedule several months ago, Bloomberg reported.

Genel has been limiting investments in Bina Bawi and Miran, which are both still in pre-production stage, given the uncertainty over their future, Bloomberg said.

The company reached a “commercial understanding” with the KRG to develop the fields two years ago, with the government committing not to serve any notice of termination while negotiations continued, according to Friday’s statement.

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