Genel Energy to Raise Stake in Kurdistan’s Chia Surkh Oil, Gas Block

Genel Energy said Monday that it is to increase its interest in the Kurdistan’s Chia Surkh oil and gas exploration block from 20 per cent to 80 per cent and will become licence operator.

Chia Surkh covers an area of 984 sq kms in the southern part of the Kurdistan Region.

Genel Energy will pay $68 million for the 40 percent interest currently held by Forbes & Manhattan (Kurdistan) Inc, a subsidiary of Longford Energy Inc.

The compnay is also paying $26 million to Petoil Petroleum for its 20 per cent interest.

“These are excellent deals for Genel. For what we consider a very good price, they give us 80 per cent of a high-quality asset in one of the last great hydrocarbon provinces accessible to international investors,” Genel Energy's chief executive officer Tony Hayward said.

We anticipate further drilling over the next two years as we conduct a comprehensive exploration programme to fully evaluate the block, Hayward said.