Genel's Rothschild Quits as Turkey Gas Focus Grows

 

Genel Energy co-founder Nathaniel Rothschild quit on Monday in the latest high-profile departure from the loss-making Iraqi Kurdistan oil producer, which is switching its focus to the Turkish gas market.

 

The majority of the board of Genel, which also announced the exit of non-executive director Simon Lockett, is now made up of Turkish nationals after co-founder Tony Hayward, the former BP chief executive, and chief financial officer Ben Monaghan, an ex-JP Morgan banker, left in recent months.

 

The two co-founders bought and listed Genel on the London Stock Exchange during a global commodity boom in 2011, with plans to make it a major oil explorer in Kurdistan and Africa.

 

But its shares now trade near an all-time low and Genel is valued at around a tenth of its peak, at 275 million pounds, pummelled by two reserve downgrades of its main Taq Taq oil field in Kurdistan, failed exploration campaigns in Africa, political unrest in Iraq and a sharp drop in oil prices since 2014.

 

Under Chief Executive Murat Ozgul, who took over from Hayward in 2015, Genel is focused on retrieving money it says it is owed by the Kurdistan Regional Government for oil it has sold and on finding a partner to develop two gas fields in the region, with the aim of linking them to neighbouring Turkey.

 

Genel, whose board includes representative of its two largest shareholders which are both among Turkey's richest families, is in talks with Turkish state-backed energy firm TEC over developing the Bina Bawi and Miran fields.

 

"Genel is today really about focusing on monetizing the gas business. That will be a key milestone and catalyst going forward," said David Round, analyst at BMO Capital Markets.

 

Although a non-executive director, Rothschild was influential as he still owns a stake of around 7.9 percent in Genel, while Hayward remains its 12th-largest shareholder.

 

New Chairman Stephen Whyte will take the helm from Hayward when the company holds its annual meeting on Tuesday.

 

"Today's news suggests that more substantial changes are afoot, as the ties with the past are broken," analysts at RBC Capital Markets said.

 

 

* Company now focused on Turkish gas market (Releads, adds details, analyst quote)

 

By Karolin Schaps and Ron Bousso

 

LONDON, June 5 (Reuters) - Genel Energy (GEGYF) co-founder Nathaniel Rothschild quit on Monday in the latest high-profile departure from the loss-making Iraqi Kurdistan oil producer, which is switching its focus to the Turkish gas market.

 

The majority of the board of Genel, which also announced the exit of non-executive director Simon Lockett, is now made up of Turkish nationals after co-founder Tony Hayward, the former BP chief executive, and chief financial officer Ben Monaghan, an ex-JP Morgan banker, left in recent months.

 

The two co-founders bought and listed Genel on the London Stock Exchange during a global commodity boom in 2011, with plans to make it a major oil explorer in Kurdistan and Africa.

 

But its shares now trade near an all-time low and Genel is valued at around a tenth of its peak, at 275 million pounds, pummelled by two reserve downgrades of its main Taq Taq oil field in Kurdistan, failed exploration campaigns in Africa, political unrest in Iraq and a sharp drop in oil prices since 2014.

 

Under Chief Executive Murat Ozgul, who took over from Hayward in 2015, Genel is focused on retrieving money it says it is owed by the Kurdistan Regional Government for oil it has sold and on finding a partner to develop two gas fields in the region, with the aim of linking them to neighbouring Turkey.

 

Genel, whose board includes representative of its two largest shareholders which are both among Turkey's richest families, is in talks with Turkish state-backed energy firm TEC over developing the Bina Bawi and Miran fields.

 

"Genel is today really about focusing on monetizing the gas business. That will be a key milestone and catalyst going forward," said David Round, analyst at BMO Capital Markets.

 

Although a non-executive director, Rothschild was influential as he still owns a stake of around 7.9 percent in Genel, while Hayward remains its 12th-largest shareholder.

 

New Chairman Stephen Whyte will take the helm from Hayward when the company holds its annual meeting on Tuesday.

 

"Today's news suggests that more substantial changes are afoot, as the ties with the past are broken," analysts at RBC Capital Markets said.

 

Shares in Genel traded down 4.6 percent at 1126 GMT, underperforming the sector index which was down 0.3 percent. Departure follows that of Chairman Tony Hayward

 

* Company now focused on Turkish gas market (Releads, adds details, analyst quote)

 

By Karolin Schaps and Ron Bousso

 

LONDON, June 5 (Reuters) - Genel Energy co-founder Nathaniel Rothschild quit on Monday in the latest high-profile departure from the loss-making Iraqi Kurdistan oil producer, which is switching its focus to the Turkish gas market.

 

The majority of the board of Genel, which also announced the exit of non-executive director Simon Lockett, is now made up of Turkish nationals after co-founder Tony Hayward, the former BP chief executive, and chief financial officer Ben Monaghan, an ex-JP Morgan banker, left in recent months.

 

The two co-founders bought and listed Genel on the London Stock Exchange during a global commodity boom in 2011, with plans to make it a major oil explorer in Kurdistan and Africa.

 

But its shares now trade near an all-time low and Genel is valued at around a tenth of its peak, at 275 million pounds, pummelled by two reserve downgrades of its main Taq Taq oil field in Kurdistan, failed exploration campaigns in Africa, political unrest in Iraq and a sharp drop in oil prices since 2014.

 

Under Chief Executive Murat Ozgul, who took over from Hayward in 2015, Genel is focused on retrieving money it says it is owed by the Kurdistan Regional Government for oil it has sold and on finding a partner to develop two gas fields in the region, with the aim of linking them to neighbouring Turkey.

 

Genel, whose board includes representative of its two largest shareholders which are both among Turkey's richest families, is in talks with Turkish state-backed energy firm TEC over developing the Bina Bawi and Miran fields.

 

"Genel is today really about focusing on monetizing the gas business. That will be a key milestone and catalyst going forward," said David Round, analyst at BMO Capital Markets.

 

Although a non-executive director, Rothschild was influential as he still owns a stake of around 7.9 percent in Genel, while Hayward remains its 12th-largest shareholder.

 

New Chairman Stephen Whyte will take the helm from Hayward when the company holds its annual meeting on Tuesday.

 

"Today's news suggests that more substantial changes are afoot, as the ties with the past are broken," analysts at RBC Capital Markets said.

 

Shares in Genel traded down 4.6 percent at 1126 GMT, underperforming the sector index which was down 0.3 percent.