Genel pays US$175m for Iraqi asset

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Genel Energy plc is to increase its resource base in Iraqi Kurdistan through the acquisition of A&T Petroleum for US$175m.

A&T, which is currently owned by Petoil Petroleum and Petroleum Products International Exploration and Production, owns a 23% stake in the exploration licence for the Bina Bawi deposit that stretches over 246 sq km to the east of Erbil. The discovery lies next to Genel’s existing Taq Taq oil field, which is currently producing 80,000 barrels a day but is projected to increase output to 200,000b/d.

Tony Hayward, the former BP chief executive who now holds the same role at Genel, said: “What we are acquiring is very high-quality acreage in an area immediately adjacent to Taq Taq, one of our major established fields which we plan in due course to link by a pipeline to the region’s main export pipeline from Kirkuk to Ceyhan.”

Hayward added that Genel estimated Bina Bawi to hold between 500 million and 1 billion barrels of oil equivalent. The company will fund the acquisition of A&T from its existing cash resources.

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