Genel Energy PLC (LON:GENL) is to acquire stakes in the Sarta and Qara Dagh blocks, in the Kurdistan region of Northern Iraq, from US oil major Chevron.
The London-listed oil producer will acquire a 30% stake in Sarta by covering 50% of the costs of ongoing field development programmes until a specified production target is achieved – Chevron, meanwhile, will retain 50% of the block alongside the Kurdistan Regional Government which holds the other 20%.
It is anticipated that Genel will spend around US$60mln at Sarta through to the end of 2020.
READ: Genel Energy shares drop despite cash flow boast"We are delighted to have been chosen as a partner to Chevron,” said Murat Özgül, Genel chief executive.
“The agreement provides access to a phased development opportunity with significant growth potential at Sarta, and an exciting appraisal opportunity at Qara Dagh.
“The additions to our portfolio are an important step in our diversification strategy, offering a further opportunity for near-term production and cash-generation."
Genel noted that the Sarta-3 appraisal well was drilled and tested last year with test production rates measured at around 7,500 barrels of oil per day. In the first phase of development, it is expected that the well will be brought online.
At Qara Dagh, Genel will acquire 40% of project equity while Chevron will retain 40%, and the KRG will continue to hold 20%, and, the London-listed firm will become the project operator.
The Qara Dagh-2 well is slated for drilling in 2020, following up 2011 well which encountered and tested oil in two zones from the Shiranish formation.www.proactiveinvestors.co.uk/companies/news/212950/genel-energy-agrees-deal-to-partner-chevron-in-kurdistan-growth-projects-212950.html
The London-listed oil producer will acquire a 30% stake in Sarta by covering 50% of the costs of ongoing field development programmes until a specified production target is achieved – Chevron, meanwhile, will retain 50% of the block alongside the Kurdistan Regional Government which holds the other 20%.
It is anticipated that Genel will spend around US$60mln at Sarta through to the end of 2020.
READ: Genel Energy shares drop despite cash flow boast"We are delighted to have been chosen as a partner to Chevron,” said Murat Özgül, Genel chief executive.
“The agreement provides access to a phased development opportunity with significant growth potential at Sarta, and an exciting appraisal opportunity at Qara Dagh.
“The additions to our portfolio are an important step in our diversification strategy, offering a further opportunity for near-term production and cash-generation."
Genel noted that the Sarta-3 appraisal well was drilled and tested last year with test production rates measured at around 7,500 barrels of oil per day. In the first phase of development, it is expected that the well will be brought online.
At Qara Dagh, Genel will acquire 40% of project equity while Chevron will retain 40%, and the KRG will continue to hold 20%, and, the London-listed firm will become the project operator.
The Qara Dagh-2 well is slated for drilling in 2020, following up 2011 well which encountered and tested oil in two zones from the Shiranish formation.www.proactiveinvestors.co.uk/companies/news/212950/genel-energy-agrees-deal-to-partner-chevron-in-kurdistan-growth-projects-212950.html