29th Oct 2015 08:30
LONDON (Alliance News) - Oil and gas company Genel Energy PLC on Thursday said it has sold a 20% participating interest in the Chia Surkh production sharing contract in the Kurdistan region of Iraq to Petoil Inc, a Turkish oil and gas company.
The consideration for the sale will be covered by Petoil taking on Genel's share of the costs associated with the Chia Surkh-12 appraisal well. The well is due to start drilling in the first quarter of 2016.
On completion of the deal, Petoil will transfer USD10.0 million to Genel as a security deposit which will be released at different stages of the well operation.
Following the sale, Genel will have a 40% interest in the licence, with Petoil holding 40% and the Kurdistan Regional Government holding the remaining 20%.
Shares in Genel were down 1.5% to 265.00 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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