In 2020, awards were made under the performance share plan and restricted share plan, no awards were made under the share option plan, the numbers of outstanding shares under the PSP, RSP and SOP as at 31 December 2020 are set out below: 


 
                                                                                   SOP 
                                          PSP         RSP        Share option plan 
                                                                                   weighted avg. exercise price 
                                          (nil cost)  (nil cost) 
Outstanding at 1 January 2019             10,148,551  1,511,298  132,334           803p 
Granted during the year                   1,930,702   850,408    -                 - 
Dividend equivalents                      592,675     84,657     -                 - 
Forfeited during the year                 (2,439,495) -          -                 - 
Lapsed during the year                    (241,580)   (18,251)   (12,746)          742p 
Exercised during the year                 -           (704,568)  -                 - 
Outstanding at 31 Dec 2019 and 1 Jan 2020 9,990,853   1,723,544  119,588           810p 
Granted during the year                   4,041,711   598,039    -                 - 
Dividend equivalents                      641,685     120,450    -                 - 
Forfeited during the year                 (1,569,870) -          -                 - 
Lapsed during the year                    (279,283)   (2,194)    (31,764)          788p 
Exercised during the year                 (2,778,121) (280,347)  -                 - 
Outstanding at 31 December 2020           10,046,975  2,159,492  87,824            817p

The range of exercise prices for share options outstanding at the end of the period is 742.00p to 1,046.00p.

Fair value of awards granted during the year has been measured by use of the Monte-Carlo pricing model. The model takes into account assumptions regarding expected volatility, expected dividends and expected time to exercise. Expected volatility was also analysed with the historical volatility of FTSE-listed oil and gas producers over the three years prior to the date of grant. The expected dividend assumption was set at 0%. The risk-free interest rate incorporated into the model is based on the term structure of UK Government zero coupon bonds. The inputs into the fair value calculation for RSP and PSP awards granted in 2020 and fair values per share using the model were as follows: 


                                                                RSP        PSP 
 
                                                                22/06/2020 22/06/2020 
Share price at grant date                                       119p       119p 
Exercise price                                                  -          - 
Fair value on measurement date                                  119p       107p 
Expected life (years)                                           1-3        3-6 
Expected dividends                                              -          - 
Risk-free interest rate                                         0.04%      0.04% 
Expected volatility                                             64.50%     64.50% 
Share price at balance sheet date                               144p       144p 
Change in share price between grant date and 31 December 2020   21%        21%

The weighted average fair value for RSP awards granted in 2020 is 119p and for PSP awards granted in 2020 is 107p.

The inputs into the fair value calculation for RSP and PSP awards granted in 2019 and fair values per share using the model were as follows: 


                                                                  RSP    RSP     PSP    PSP 
 
                                                                  7/5/19 21/8/19 7/5/19 21/8/19 
Share price at grant date                                         211p   183p    211p   183p 
Exercise price                                                    -      -       -      - 
Fair value on measurement date                                    211p   183p    130p   109p 
Expected life (years)                                             1-3    1-3     3-6    3-6 
Expected dividends                                                -      -       -      - 
Risk-free interest rate                                           0.83%  0.42%   0.83%  0.42% 
Expected volatility                                               57.37% 55.26%  57.37% 55.26% 
Share price at balance sheet date                                 189p   189p    189p   189p 
Change in share price between grant date   and 31 December 2019   (10%)  3%      (10%)  3%

The weighted average fair value for PSP awards granted 2019 is 129p and for RSP awards granted in 2019 is 206p.

Total share-based payment charge for the year was USD5.8 million (2019: USD5.8 million).

21. Capital commitments

Under the terms of its production sharing contracts ('PSC's) and joint operating agreements ('JOA's), the Company has certain commitments that are generally defined by activity rather than spend. The Company's capital programme for the next few years is explained in the operating review and is in excess of the activity required by its PSCs and JOAs.

22. Related parties

The directors have identified related parties of the Company under IAS 24 as being: the shareholders; members of the Board; and members of the executive committee, together with the families and companies, associates, investments and associates controlled by or affiliated with each of them. The compensation of key management personnel including the directors of the Company is as follows: 


                                                     2020 2019 
                                                     USDm   USDm 
Board remuneration                                   1.0  0.7 
Key management emoluments and short-term benefits    7.6  5.6 
Share-related awards                                 2.5  0.6 
                                                     11.1 6.9

There have been no changes in related parties since last year and no related party transactions that had a material effect on financial position or performance in the year. There are not significant seasonal or cyclical variations in the Company's total revenues.

23. Events occurring after the reporting period

None.

24. Subsidiaries and joint arrangements

The Company has four joint arrangements in relation to its producing assets Taq Taq, Tawke, Sarta and pre-production asset Qara Dagh. The Company holds 44% working interest in Taq Taq PSC and owns 55% of Taq Taq Operating Company Limited. The Company holds 25% working interest in Tawke PSC which is operated by DNO ASA. The Company holds 30% working interest in Sarta PSC which is operated by Chevron. The Company holds 40% working interest in Qara Dagh PSC which is operated by the Company.

For the period ended 31 December 2020 the principal subsidiaries of the Company were the following: 


Entity name                                  Country of Incorporation   Ownership % (ordinary shares) 
Barrus Petroleum Cote D'Ivoire Sarl1         Cote d'Ivoire              100 
Barrus Petroleum Limited2                    Isle of Man                100 
Genel Energy Africa Exploration Limited3     UK                         100 
Genel Energy Finance 2 Limited4              Jersey                     100 
Genel Energy Finance 4 plc3                  UK                         100 
Genel Energy Finance plc (in liquidation)5   UK                         100 
Genel Energy Gas Company Limited4            Jersey                     100 
Genel Energy Holding Company Limited4        Jersey                     100 
Genel Energy International Limited6          Anguilla                   100 
Genel Energy Miran Bina Bawi Limited3        UK                         100 
Genel Energy Morocco Limited3                UK                         100 
Genel Energy No. 6 Limited3                  UK                         100 
Genel Energy Petroleum Services Limited3     UK                         100 
Genel Energy Qara Dagh Limited3              UK                         100 
Genel Energy Sarta Limited3                  UK                         100 
Genel Energy Somaliland Limited3             UK                         100 
Genel Energy UK Services Limited3            UK                         100 
Genel Energy Y?netim Hizmetleri A.S.7        Turkey                     100 
Taq Taq Drilling Company Limited8            BVI                        55 
Taq Taq Operating Company Limited9           BVI                        55

1 Registered office is 7 Boulevard Latrille Cocody, 25 B.P. 945 Abidjan 25, Cote d'Ivoire

2 Registered office is 6 Hope Street, Castletown, IM9 1AS, Isle of Man

3 Registered office is Fifth Floor, 36 Broadway, Victoria, London, SW1H 0BH, United Kingdom

4 Registered office is 12 Castle Street, St Helier, JE2 3RT, Jersey

5 Registered office is 3 Field Court, London, WC1R 5EF

6 Registered office is PO Box 1338, Maico Building, The Valley, Anguilla

7 Registered office is Sehit Omer Haluk Sipahioglu Sokak (Eski Noktali Sokak) No:1 Sheraton Lugal Ofisleri Daire: 21 Kavaklidere 06700, Ankara, Turkey

8 Registered office is PO Box 146, Road Town, Tortola, British Virgin Islands

9 Registered office is 3rd Floor, Geneva Place, Waterfront Drive, PO Box 3175, Road Town, Tortola, Virgin Islands, British

25. Annual report

Copies of the 2020 annual report will be despatched to shareholders in April 2021 and will also be available from the Company's registered office at 12 Castle Street, St Helier, Jersey JE2 3RT and at the Company's website - www.genelenergy.com.

26. Statutory financial statements

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