Update on Chia Surkh

abarrelfullabarrelfull wrote on 02 May 2012 06:44
Tags: deals genel-energy iraq m-east upstream

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On 16 January 2012, Genel Energy plc ("Genel Energy") announced that it had entered into transactions with Forbes & Manhattan (Kurdistan) Inc. (a subsidiary of Longford Energy Inc.) ("F&M") and Petoil Petroleum to increase Genel Energy's interest in the Chia Surkh block in the Kurdistan Region of Iraq from 20 per cent to 80 per cent and to become Operator of that block.

Genel Energy today announces that the Kurdistan Regional Government Oil and Gas Council has approved the F&M transaction and that accordingly, the F&M Transaction has completed. As a result, Genel Energy has increased its interest in the Chia Surkh block to 60 per cent by acquiring the 40 per cent interest formerly held by F&M, and has been appointed Operator of the block. The total paid by Genel Energy for this additional 40 per cent interest was $68 million.

Genel Energy also announces that Genel Energy and Petoil have terminated the Petoil Transaction, and Petoil will retain its 20 per cent interest in the Chia Surkh block. The Government will retain its existing 20 per cent carried interest.

Tony Hayward, chief executive of Genel Energy said:

"We are pleased that the transaction has now completed, allowing us to increase our interest in Chia Surkh and to take over the operatorship of this high quality asset. Genel Energy remains focused on deepening its interest in the Kurdistan Region and we look forward to driving forward a thorough exploration and appraisal programme on Chia Surkh."

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