Genel Energy to acquire a further 21 per cent stake in Bina Bawi block

Genel-oilGenel Energy will acquire a 21 per cent interest in Bina Bawi exploration block. (Image source: Genel Energy)Genel Energy has announced that it will acquire a 21 per cent interest in the Bina Bawi exploration block in the Kurdistan Region of Iraq from Hawler Energy for US$240mn

The transaction is in addition to the company's prior acquisition of an initial 23 per cent interest in the Bina Bawi block earlier this year.

The Bina Bawi exploration block is in the centre of the Kurdistan Region of Iraq and covers an area of 240 sq km. It is 50km to the east of Erbil and is the adjacent block to Genel Energy's producing oil field Taq Taq.

To date, two of the three exploration wells drilled on the block have encountered significant hydrocarbons.

Upon completion of the acquisitions, Genel Energy will hold a 44 per cent working interest, OMV (operator) will hold a 36 per cent working interest and the Kurdistan Regional Government will retain a 20 per cent working interest.

The transaction is conditional on the receipt of approval from the Kurdistan Regional Government.

Commenting on the transaction, Tony Hayward, chief executive officer of Genel, said, “This acquisition gives us a material interest in a third major oil and gas development (alongside Taq Taq and Tawke) and reinforces Genel's position in the Kurdistan oil and gas province."

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